The nightmare days of 2022 feel like yesterday, but they have passed. Bitcoin has returned to its splendid days of 2021. A significant portion of altcoins have also reached their 2022 peaks and are expected to continue their rise in the rally. So, what do market experts say about the current situation? Are cryptocurrencies breaking records only in terms of price?
Crypto Market Expert Opinions
Cryptocurrency analysis firm CryptoSlate’s research and data analyst James Van Straten provided a comprehensive assessment of the current market situation in his latest market evaluation. Billions of dollars worth of Bitcoin leaving exchanges was the focal point of his attention. Although many metrics have yet to report a massive increase in the number of new investors in the markets, exchange reserves are depleting.
According to data from Glassnode, Van Straten revealed that on March 1st alone, BTC withdrawal transactions amounted to around $2 billion.
“I don’t think I’ve ever seen anything like this. On Friday, a total of just over $2.3 billion in Bitcoin left the exchanges. It was one of the largest BTC withdrawal transactions of the last five years.”
Moreover, these exchange outflows are not only related to Coinbase. This indicates activity beyond demand from ETFs.
“Binance saw about $400 million, and there have been quite significant outflows in the last few days. The rest was seen by Coinbase. The outflows from Binance are interesting because they have nothing to do with ETFs.”
The total Bitcoin reserve in major cryptocurrency exchanges has fallen to as low as $142.5 billion. The last time this figure was seen was in March 2018, when BTC was at $8,000.
Influx of New Crypto Investors
Crypto Dan, a contributor to CryptoQuant, pointed out the change in unspent transaction output (UTXO) data in his latest Quicktake market review. As you may recall, these age bands were focused on how long BTC assets were held by investors. The awakening of “older” coins that have been inactive for six months or longer is leading to an increase in the number of young Bitcoin investor wallets.
“New investors are flocking in, and we can expect many new ‘individual’ investors to join in the near future. Eventually, this rate will continue to drop sharply, leading to the ‘real bull market’ we desire.”
