After 2021, 2024 will undoubtedly be the year remembered where Bitcoin ($BTC ) surpassed the barrier of $100,000, and even reached a value of more than $108,000 per unit.
However, a few days ago, the asset's price had a drop, and at this moment it is fluctuating, with an upward trend (at the time of writing this note the value of the cryptocurrency is $95,900), and although for many this drop could be something bad, according to some analysts it could be something positive.
What is happening in the exchanges with Bitcoin?
This optimism is due to the fact that according to data published by CryptoQuant, the net outflows of BTC from exchanges in the last week exceeded $2.5 billion, which could mark the upcoming bullish sentiment from investors.
With this data on the table, it is easy to observe the pattern that would indicate that when the outflows of an asset from the exchanges increase, it could be a hint of a possible shift towards keeping assets in private wallets, instead of going out to trade or sell the coins.
So, given this encouraging outlook, for some experts it would be a signal towards bullish sentiment from investors, as they would be willing to wait for prices to rise, and with that fantasize about a new all-time high in the short term.
The outflows of BTC from #exchanges may mean that investors are not going to sell their holdings in the short term, and will keep them in the medium or long term because they expect the value to rise. This data is a new positive signal for the crypto ecosystem, which had great performance and more than positive news to continue growing as an industry in 2024.
Could the price correction of BTC be greater?
On the other hand, as previously mentioned, the price of BTC is currently on the decline and for many this could be an indicator of a possible even greater correction.
In that sense, a week ago, Bitcoin reached its all-time high of nearly $109,000, and since then, it started to fall and today it has accumulated a drop of almost 12% to current values.
This drop coincided with Powell's statements that the Fed (Federal Reserve of the United States) cannot hold Bitcoin due to legal restrictions, and a rate cut more moderate than expected by the market.
These news can always generate short-term corrections, however, considering the government change that will take place in January, with a pro-crypto vision, along with the ETFs of #bitcoin and #Ethereum that have been performing greatly, our expectations are that the Bull Market continues to rise, and we see even higher prices than the recent ones.
In most exchanges, there was an increase in BTC purchases, something that has been repeating during each pullback of the main cryptocurrencies. Users understood that each drop in prices can be an opportunity to acquire cryptocurrencies at a good value.
It's something for not only #BtcNewHolder to keep in mind, but for all of us who are holders of this crypto, considered the "digital gold".
