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The largest cryptocurrency, Bitcoin (BTC), recently amazed the market with its volatile performance. Following a strong rise the previous week, Bitcoin fell after U.S. employment data exceeded expectations. Despite these fluctuations, a new analysis by 10X Research suggests the largest cryptocurrency might be on the verge of a significant rally, attracting both traders and long-term investors.
Strong BTC Withdrawals from Crypto Exchanges
Recent on-chain activities signaled a potentially big week for Bitcoin. According to 10X Research, approximately 100,000 BTC worth about $6.75 billion were withdrawn from exchanges last month. These significant withdrawals primarily came from two major U.S. platforms: Kraken and Coinbase. Around $3.8 billion worth of 55,000 Bitcoin were withdrawn from Kraken, while $1.7 billion worth of 24,000 Bitcoin were withdrawn from Coinbase.
These large withdrawals indicate a potential bullish sentiment among investors. Typically, when large amounts of Bitcoin are withdrawn from exchanges, it means holders intend to keep their assets rather than sell them in the near future. This trend could tighten the current supply on crypto exchanges and potentially drive the price up if demand remains steady or increases.
The unprecedented nature of these withdrawals and their impact on Bitcoin’s price movements were shared by 10X Research on the social media platform X. Moreover, current market dynamics suggest Bitcoin might be preparing for a significant breakout. The combination of reduced supply on exchanges and the lasting effects of Bitcoin’s block reward halving could create ripe conditions for a price increase. Both investors and analysts are closely watching the market for a breakout signal, making this week critical for Bitcoin.
Focus on CPI, PPI, and FOMC Interest Rate Decision
However, the recent market volatility, especially following strong U.S. employment data, has raised concerns about a hawkish stance from the Fed. The market will closely watch this week’s U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data to track inflation. Additionally, the Federal Open Market Committee’s (FOMC) interest rate decision will play a significant role in shaping market sentiment.
With the latest data, Bitcoin’s price rose by 0.23% in the last 24 hours to $69,432, while trading volume increased by 19% to $15.27 billion.
