Bitcoin’s recent surge in price has been widely attributed to a variety of factors, such as the banking crisis, the dollar’s fall in dominance, and institutional adoption. However, recent data from Bank of America (BoA) analysts suggests that this surge might just be starting as there is still gas for more rallies.
The analyst reveals a growing trend of investors withdrawing their assets from exchanges and moving them to personal wallets, which is an indication of a long-term bullish outlook for the cryptocurrency as well as room for more rallies.
Bitcoin Still Has Gas For More Rally
Despite Bitcoin recently tapping into a major high of $30,000 up by over 80% since the start of the year, the BoA analysts believe the asset could still hit another major high sooner or later.
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According to a note from Bank of America strategists Alkesh Shah and Andrew Moss, an amount of $368 million BTC was sent to personal wallets in the week through April 4, coinciding with the second-largest net BTC outflow from crypto exchanges this year.
The report notes that the trend of moving tokens from exchanges to personal wallets basically suggests that investors are looking to hold them for the long term, indicating a decrease in selling pressure.
The analysts stated:
Investors transfer tokens from exchange wallets to their personal wallets when they intend to hold them (or HODL), indicating a potential decrease in sell pressure.
According to the report, concerns about regulatory crackdowns in the US may have played a role in the recent outflow of Bitcoin from exchanges. Major crypto firms in the US, such as Coinbase and Binance, have faced increased scrutiny from regulators, leading some investors to move their assets off of these platforms.
Despite these regulatory concerns, the overall trend of investors moving Bitcoin from exchanges to personal wallets suggests a bullish outlook for the cryptocurrency. This trend indicates that investors are confident in BTC’s long-term potential and are not concerned about short-term price fluctuations.
While some analysts have warned of a potential price correction in the short term, the growing trend of investors moving Bitcoin to personal wallets suggests that the cryptocurrency still has a long way to go in its rally.
Most BTC Are For Long-Term?
Backing up the BoA analysts, Glassnode’s data recently revealed that many Bitcoin holders have chosen to leave their BTC dormant in their wallet indicating their willingness to want to hold their Bitcoin asset for the long term.
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According to Glassnode, there are now more BTC that is dormant than there are available Bitcoin for purchase on exchanges. Nearly 29% of all BTC in circulation have not moved in the last 5 years, which is over $200 billion in market cap that hasn’t moved in half a decade.
Notably, Bitcoin has started to ignore negative news in the crypto industry and has continued to move in a bullish trend. Over the past 7 days, the asset is up by more than 7% pushing the global market cap to nearly $1.3 trillion.
Bitcoin has a trading price of $30,254, at the time of writing.
Featured image from Shutterstock, Chart from TradingView
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