A popular crypto analyst bitcoin reported that the metric is approaching a positive level not seen in years.
The anonymous server of cryptocurrency channel InvestAnswers has told 442,000 YouTube subscribers that Bitcoin withdrawals are about to exceed deposits for the first time in five or six years.
“I have never seen this phenomenon in the last five or six years… People are buying everything they can from exchanges… Moreover, this is happening despite the suspension of crypto withdrawals…
The number of exchange deposits and withdrawals tends to be very highly correlated with spot prices.”
Koinfinans.com As we reported, the famous server said that he believes the increase in withdrawals is a positive development for the Bitcoin price. Bitcoin is trading at $21,637 at the time of writing. The top-ranked digital asset by market cap is trading roughly at the same price as a day or even a week ago, but is more than 70% behind its all-time high of $69,044, which it reached last November.
The risk-free market mood is spreading to cryptocurrency exchanges as investors withdraw and move their coins offline to crypto wallets.
In addition, analytics firm Glassnode noted that the number of customer deposits tends to be greater than withdrawals. That’s because exchanges process multiple withdrawals in a single transaction, compared to deposits that are processed individually.
According to the InvestAnswers server, the increase in withdrawals indicates that the market is cautious and focused more on in-wallet storage outside the exchange.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.