Bitcoin’s stint above $40,000 continues as the market ushers in another week of trading. Investors had a wild weekend, but the market has stabilized. The market has seen a return to faith with the last week’s break of $40,000, which is encouraging more investors to consider investing in this digital asset. An accumulation pattern has developed that indicates a bullish outlook over the long-term.
Inflows of Exchange Currency Rise
The bitcoin exchange has seen an increase in outflows over the past week. This is marked by the recovery of the digital asset’s value above the $40,000 level. The cryptocurrency can find it difficult to reach this elusive level. It has received enough support from the community to be able to move into an accumulation trend, thanks to so many breakouts above this level in the first 3 months of 2018.
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Glassnode data shows that there have been more outflows of bitcoins in the past week than inflows. The daily reports show that bitcoin investors choose to transfer their money to different wallets than these central exchanges. This was evident in Saturday’s transaction of $1.6 billion worth bitcoin that took place on one day.
Although not by much, outflows are still higher than inflows at the weekly level. A recent report by the On-chain Data Aggregator showed that $6 billion worth of BTC was moved out from exchanges, compared with $6.3 billion received.
🚨Weekly On-Chain Flow🚨#Bitcoin $BTC
➡️$6.0B
⬅️$6.3B
📉 Net flow: -$298.2M#Ethereum $ETH
➡️Invoices up to $5.2B
⬅️Get $6.7B Out
📉 Net flow: -$1.5B#Tether (ERC20) $USDT
➡️Invoice: $4.1B
⬅️Outgoings: $4.2B
📉 Net flow: -$99.0Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) March 21, 2022
Bitcoin Investors Are Accumulating
The trend towards outflows exceeding inflows is usually indicative of one thing: the fact that investors accumulate. If the price of bitcoin is low, market trends could have an impact. With bitcoin trading at just $41,000 and reaching $69K, many investors see it as a great time to buy while the price recovers.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Safekeeping is another reason why exchange outflows are so high. A saying in the crypto space that is used a lot is “Not your keys, not your coins.” This simply means that for an investor’s coins to be truly safe, they have to keep it in a wallet whose private keys they control and that is not the case on exchanges.
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Instead of transferring their coins to these exchanges, investors would rather have them removed from the platform and sent to personal wallets. Investors who hold their coins over the long-term find this especially valuable. It ensures that they remain safe in the event of a hack or other unfortunate events at an exchange. It also keeps investors’ wealth from being controlled by any governmental entities.
Featured image taken from NewsBTC and chart by TradingView.com