Billion-dollar Bitcoin has left exchanges with the biggest single-day exit in 12 months. Net outflows from exchanges generally represent investors’ intention to hold coins for the long term. Analyst Tom Lee talks about a very strong 2024 for Bitcoin amid two bull winds. The Bitcoin prediction of a popular analyst who looked from a different perspective was surprising!
On-chain activity supports Bitcoin rally
More than 28,000 BTC worth $1.19 billion left central exchanges on Wednesday, according to data from blockchain analysis firm Glassnode. This was the largest single-day outflow in BTC since December 14, 2022. Net outflows from exchanges generally indicate investors’ intention to hold coins directly. Or, it’s a sign that you prefer a longer-term holding strategy.
Coinbase, which is responsible for nine of the 12 spot BTC exchange-traded funds (ETFs) offered in the US, saw an outflow of over 18,000 BTC alone on Wednesday, according to analytics firm CryptoQuant. This has caused the crypto community to speculate about institutional activity ahead of the possible ETF launch in January. The total BTC balance in wallets connected to centralized exchanges fell to the lowest level since April 2018. Other things being equal, fewer coins on an exchange means less supply-side pressures and potential for price appreciation.
Fundstrat’s Tom Lee’of Bitcoin estimated
Tom Lee, managing partner of equity research firm Fundstrat Global Advisors, says 2024 will be a big year for Bitcoin. Lee predicts that two major headwinds will propel BTC to success next year. In this context, Lee makes the following statement:
The first is the reversal of monetary policy. Central banks are getting really dovish. There was no decline in crypto during a time when the Fed was relaxed. Secondly, there is actually a way to reach more customers due to the possibility of a spot Bitcoin ETF being approved. (…) If people put just 1% of their 401(k)s into Bitcoin, it could overwhelm the BTC supply. This will increase prices. I think Bitcoin could have a very strong year next year.
Popular analyst’s Bitcoin prediction surprised!
A popular crypto analyst nicknamed Credible Crypto says Bitcoin is on track to reach the ATH level. But he also warns that BTC will see an “aggressive correction” later. The analyst says his prediction is based on three to four examples where parabolic rallies were immediately followed by dramatic crashes. In this context, Credible Crypto shares the following assessment:
For every action there is an equal and opposite reaction. This also applies to markets. If you think we’re going to have a parabolic rally to $100,000+ in a relatively short period of time, you have to accept that there will be an equally aggressive correction following it. Parabolic rallies occur because of greed and irrational exuberance, and greed and irrational exuberance are what set a market up for devastating crashes. These go hand in hand. You can’t have one without the other.
Credible Crypto predicts that BTC will reach all-time highs before crashing. Bitcoin was trading at $42,523 at the time of writing. BTC is up more than 160% since the beginning of 2023. However, it remained down more than 37% from the ATH level it reached in November 2021.
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