On-chain data shows that US-based crypto exchange Kraken has recorded the largest Bitcoin deposit in its reserves in several years. This comes amid a 5% increase in the BTC price compared to a week ago.
Kraken's Massive BTC Flow
According to on-chain data from Crypto Quant, a large BTC inflow was recorded into the exchange, pointing to speculations around a potential bull run environment for the top cryptocurrency. A massive inflow of 14,924 Bitcoins was recorded on the exchange — making it the largest inflow recorded on Kraken since 2018 . High volumes of exchange inflows have historically been associated with near-future price increases for Bitcoin. Therefore, if the $30,000 milestone is crossed, it could act as a psychological support for the next leg of the rally.
The recent setbacks by the US Securities and Exchange Commission (SEC) in the Grayscale and Ripple XRP cases and the optimism regarding the approval of spot Bitcoin ETFs are seen as positive developments for the crypto ecosystem. But while it could take until at least 2025 for the XRP lawsuit to fully resolve, spot ETF applications from companies like Blackrock have virtually no chance of approval until 2024.
On the macroeconomic front, the US government prevented a shutdown at the last hour, triggering an expected rally in Bitcoin. There is also a positive development in the technical infrastructure of cryptocurrency; The Bitcoin Halving event is planned to take place in the second quarter of 2024. Overall, there are multiple factors investors can look at to gauge the potential of a cryptocurrency.
