Bitcoin: Exchange outflow to illiquid supply, here’s everything that looks good for BTC

ambcrypto.com:

Bitcoin, the largest cryptocurrency, seemingly consolidating around the $47k mark according to CoinMarketCap. It traded at the $46.8k mark at press time after recording a 0.5% correction in 24 hours. So BTC’s price might be consolidating or even reaching a short-term top. But that doesn’t stop holders to continue their march. 

Crypto investors appear to have resumed Bitcoin accumulation, a sign they expect the price to rise. According to Glassnode, the outflow of Bitcoin from exchanges in the past 30 days is nearly 100,000. The monthly flow of Bitcoin from such a large-scale exchange occurred several times in history, but most occurred after 12 March, 2020.

Source: Glassnode

On-chain data analytics firm, Glassnode stated,

“Bitcoin exchange outflow volume recently hit a rate of 96.2k $BTC per month. Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions through history, with most being after the March 2020 liquidity crisis”.

Investors typically take direct custody of coins when anticipating a price rise. A continued exodus of cryptocurrency from exchanges implies less selling pressure in the market and scope for a sharp rally.

In addition, the flagship witnessed a significant rise in user growth. The data from Glassnode showed that the Bitcoin user growth showcased a sharp rise vs the supply issuance.

Source: Glassnode

This demand-supply gap favored a continued price surge to the north especially after just2 million BTC left in the circulation. Talking about demand and supply, illiquid supply in on a rise again. 63.15% of the total Bitcoin supply remains illiquid for the last year, which is 0.3% short of the new all-time high.

Renowned analyst Will Clemente, on 3 April, highlighted this