Bitcoin’s price has been a hot topic amid market volatility, while a fresh analysis by a leading research firm has given new hope to investors.
Bitcoin, the flagship cryptocurrency, has recently captivated the crypto market due to its volatile performance. After a strong run in the past week, BTC has seen a dip following strong US jobs data.
Meanwhile, amid these ups and downs, a new analysis from 10X Research suggests that Bitcoin may be on the verge of a major rally. The prediction has caught the attention of both traders and long-term investors, indicating potential upside for the digital asset.
On-chain activity signals a big week
Bitcoin’s recent movements have been closely scrutinized by market analysts. According to 10X Research, about 100,000 bitcoins were withdrawn from exchanges last month, worth about $6.75 billion.
Notably, this exodus from crypto exchanges was largely led by two major US platforms: Kraken and Coinbase. Kraken saw the return of 55,000 Bitcoins, worth about $3.8 billion, while Coinbase experienced the return of 24,000 Bitcoins, worth $1.7 billion.
Meanwhile, this massive pullback indicates potential bullish sentiment among investors. When large amounts of bitcoin are removed from an exchange, it usually indicates that holders intend to hold onto their assets rather than sell them in the near future.
This trend can tighten the supply available on the exchanges, causing the price to rise if demand remains stable or increases.
In particular, the firm’s analysis, shared on social media platform X, highlights the unprecedented nature of these withdrawals and the implications for bitcoin’s price action.
Bitcoin price and performance
Current market dynamics suggest that Bitcoin is preparing for a major breakout. The combination of low exchange supply and the lingering effects of the Bitcoin halving could create the perfect conditions for a price surge.
In particular, investors and analysts alike will be keeping a close eye on the market for signs of a breakout, potentially making this an important week for Bitcoin.
However, the market’s recent volatile performance, particularly after strong employment data, has raised concerns about a tighter stance by the Federal Reserve.
Now, the market will keep a close eye on this week’s US Consumer Price Index (CPI), and PPI data to track inflation levels in the country. In addition, the FOMC interest rate decision will also play an important role in shaping market sentiment.
As of writing, bitcoin was up 0.23 percent and trading volume rose 19 percent to $15.27 billion, exchanging hands at $69,432.50. The crypto touched a high of $69,817.52 in the last 24 hours, after touching a 30-day high of $71,946.46.
