Analysts from cryptocurrency research company CryptoQuant pointed out that the Bitcoin reserves of major centralized exchanges (CEX) are continuing to decrease, but the stablecoin reserves are increasing simultaneously. This is likely to be "Bitcoin is brewing a new wave of gains." ” signal.
CryptoQuant data shows that investors’ withdrawals from exchanges have not slowed down over the past month. As of the time of writing, centralized exchanges hold a total of 2.58 million Bitcoins, worth approximately US$150.7 billion, a decrease of more than 3% from last month, indicating that investors are increasingly "hoarding coins."
Source: CryptoQuant
According to CryptoQuant analyst Tarek On-Chain, exchanges have seen significant reductions in Bitcoin reserves, a trend that tends to precede a rise in the price of the currency.
Since most investors believe in the principle of "Not your keys, not your coins" (Not your keys, not your coins), they usually transfer cryptocurrencies to cold wallets when their long-term belief is high. Store it properly for long-term holding.
The market generally believes that when investors move a large amount of Bitcoin from exchanges, it also means a large amount of supply is removed from the open market, which in turn leads to tight supply. While selling pressure decreases, buying pressure will also increase. Therefore, the phenomenon of large amounts of funds flowing out of exchanges is often regarded as a "bullish indicator."
Tarek On-Chain also mentioned that the current stablecoin reserves of exchanges are also increasing, which means that the market has strong buying interest. Investors are accumulating "silver bullets" that can be deployed at any time and are waiting for the right time to enter the market to buy.
Source: CryptoQuant
Analysts said that the simultaneous appearance of these two indicators as the exchange's Bitcoin reserves declined and stablecoin reserves increased laid the foundation for an upward breakthrough in Bitcoin prices.
As Bitcoin supply dwindles and purchasing power increases, the market is primed for a potential rise. Historically, this supply and demand imbalance has typically resulted in significant price increases. Investors should keep an eye on possible breakouts in the coming weeks.
〈Bitcoin’s “two bullish signals” emerge! Analyst: A new wave of gains is brewing> This article was first published on "Block Guest".
