Bitcoin, the leading cryptocurrency by market capitalization, is currently wrestling with a significant milestone as it tries to sustain a $2 trillion market cap and a $100,000 price tag. The successful surmounting of these formidable obstacles could potentially unfail the path for clear skies ahead in Bitcoin’s market trajectory.
The digital currency has already rallied over $30,000 since the U.S. election in November, which coincided with a notable outflow of coins from exchanges. The bulk of these outflows are dominated by Bitcoin, often leaving the exchanges in considerable amounts.
This trend of outflow has been observed through data provided by blockchain analytics firm, Glassnode. The data reveals that transactions involving over $10 million worth of Bitcoin have been hastily exiting exchanges, signaling a surge of aggressive buying at the institutional level.
A significant number of these large transactions have been traced back to Coinbase, a renowned digital currency exchange. This has given rise to the phenomenon known as the “Coinbase premium” in recent weeks, which is basically a higher price of Bitcoin on the Coinbase exchange as compared to other platforms.
As of the day before, nearly 12,500 BTC, equivalent to $1.3 billion, had departed from exchanges. Approximately half of this amount can be attributed to outflows from Coinbase, as indicated by the Glassnode data.
Since the victory of Donald Trump in the U.S. elections, Glassnode data reports an outflow of roughly 200,000 BTC from exchanges. This has resulted in a remaining balance of around 2.8 million BTC on exchanges, marking the lowest amount seen over the past seven years.
This trend suggests an increasing preference for holding Bitcoin among investors, which could be due to various factors. One possible reason could be the anticipation of a price surge, which makes investors reluctant to sell. Alternatively, it could be a reflection of a shift towards using Bitcoin as a store of value, similar to gold.
Whatever the underlying reasons might be, the fact remains that Bitcoin is experiencing a pivotal moment in its history. As it grapples with the challenge of sustaining a $2 trillion market cap and a $100,000 price, the world watches on with bated breath. The outcome holds the potential to shape the future of not only Bitcoin but the entire landscape of cryptocurrency.
