“A popular crypto analyst says an under-the-radar Bitcoin metric is approaching a positive trend that has not been unseen for years”— Paul Ebeling
In a new video, the anonymous host of InvestAnswers tells his 442,000 YouTube subscribers that Bitcoin withdrawals are about to exceed deposits for the 1st time in 6 yrs.
“Over the last five or six years, I have never seen this phenomenon… People are withdrawing everything they can from exchanges… This is also despite the suspension of withdrawals…
The number of exchange deposits and withdrawals tend to have a very high correlation with spot prices.”
The host says he believes the increase in withdrawals is a positive development for Bitcoin’s price. Bitcoin is trading at $20,483 at time of writing. The Top-ranked crypto asset by market cap is trading at roughly the same price it was a day ago and a wk ago, but it remains down more than 70% from its all-time high of $69,044, which it hit last November.
Crypto analytics firm Glassnode notes the number of customer deposits tends to be greater than withdrawals because exchanges process multiple withdrawals in a single transaction, compared to deposits, which are processed individually.
The increase in withdrawals indicates market caution and an increased focus on self-custody, according to the host of InvestAnswers.
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Have a prosperous day, Keep the Faith!