Bitcoin Retakes $70,000 Mark Amid Record Low Supply and Anticipation of Further Growth
Summary:
Bitcoin regained the $70,000 milestone on March 25, triggered by a resurgence in BTC accumulation, which caused a record 9-year low in Bitcoin supply on the Coinbase cryptocurrency exchange. Signs of continued investor interest were seen with Coinbase's all-time low Bitcoin holdings and the total Bitcoin in accumulation addresses nearing a record high. In addition, Bitcoin reserves across all exchanges hit a 3-year low, suggesting potential for further Bitcoin value appreciation.
On March 25, Bitcoin (BTC) clawed back the $70,000 threshold after a resurgence in BTC accumulation triggered a 9-year record decrease in Bitcoin supply available on the Coinbase digital currency exchange. Bitcoin once again exceeded the $70,000 mark, first achieved since March 15, as per data from CoinMarketCap, taken at 4:47 pm (UTC).
In terms of supply, Coinbase's Bitcoin holdings dipped to an unprecedented low in nine years, settling at 344,856 BTC on March 18. This reveals a trend of investors reigniting their BTC accumulation away from the exchanges. The previous time Coinbase saw such a significant plunge in available BTC was back in 2015, as indicated by data from Glassnode.
According to Glassnode, the sum total of BTC residing in accumulation addresses has seen a resurgence, surpassing 3.20 million BTC and coming close to setting a new record. Accumulation addresses typically house over 10 BTC and are devoid of outgoing transactions or any associations with centralized exchanges or mining corporations.
Highlighting the uptick in the accumulation trend, BTC deposits in accumulation addresses touched a record high of 25,300 BTC on March 22, as disclosed by IT Tech, a verified author for CryptoQuant. This hints at sizeable investors positing a bullish stance following a recent 15-20% downturn from the record high of $74,000.
Combining all platforms, Bitcoin reserves have plummeted to a three-year bottom on March 25, standing at 1.92 million BTC, as revealed by CryptoQuant. Consequently, with historic lows in Bitcoin reserves on exchange platforms and Exchange Traded Funds (ETFs) drawing billions in investments, there may still be room for the value of Bitcoin to leap forward.
However, it should be noted that this news article does not provide any investment guidance or endorsements. All investment and trading strategies entail risks, and therefore, individuals should conduct thorough research prior to making any decisions.
Published At
3/25/2024 8:04:45 PM
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