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As investors step up their efforts to move cryptocurrencies into personal wallets, market observers see the latest trend in Bitcoin (BTC), according to a recent memo drafted by Bank of America (BofA) analysts. ) is declining in “selling pressure”.
The week ending April 4 marked a net BTC outflow from the second largest cryptocurrency exchange of the year, with a net $368 million worth of crypto transferred to private wallets. BofA strategists Alkesh Shah and Andrew Moss wrote in a note. obtained by Bloomberg.
According to two analysts, “Investors transfer tokens from exchange wallets to personal wallets when they intend to hold the tokens (or HODL). shows ”.
In a memo, the strategist said concerns raised by the U.S. regulatory crackdown on cryptocurrency exchanges could be the main factor driving the exodus from the platform.
Garry Krugljakow, founder of 0VIX, an open-source protocol for lending and borrowing, commented that traders are waiting for another major signal to confirm a BTC breakout. Economic data due to be released in the US this week, especially the country’s consumer price index released today, could serve as such a signal, he said.
Bloomberg News’ latest survey found that the median estimate increased 5.1% year-over-year in March. Some cryptocurrency market observers believe that BTC price could react positively to figures indicating weak consumer sentiment in the US.
According to Krugljakow, “Below 5.2% or around 5.2% could lead to a continuation of BTC’s bullishness.” Above 5.3% would probably provide a slight shock and dampen current price action. .”
Bitcoin’s price topped $30,000 for the first time since June 2022 this week, with the top cryptocurrency up more than 80% since December 31st. The tough stance adopted by American regulators after the collapse of FTX in late 2022.
Many market analysts believe that a breakout of $30,000 could open the door to a short-term test of late May 2022 highs of around $32,500.
“Bitcoin has stopped reacting to bad news,” commented Nathan Batchelor, managing partner of data analytics platform Beyond Trader. “This is a clear sign of a strong buyer’s market.”