Cryptocurrency analytics company Alphractal has published a prominent rating of Bitcoin.
According to the analysis, the cryptocurrency exchange’s Bitcoin balance has fallen by 3.77 million BTC since February 2020. This means that around $219 billion worth of Bitcoin has been withdrawn from the exchange.
According to Alphractal, this major move may seem sold out at first glance, but the opposite is true. This rise is a strong indicator of confidence and maturity in the market.
Alphractal noted that investors are not planning on selling Bitcoin by moving it into their personal wallets, and viewing digital assets as a long-term valued storage. According to analysts, this indicates that the “HODL” strategy is gaining strength.
Sales pressure is believed to have been significantly reduced as Bitcoin is pulled away from the exchange, and supply squeezes as prices are more likely to move upwards in the event of a potential increase in demand. Alphractal considers this to be a “very bullish signal.”
As a result, Alphractal says the 3.77 million BTC outflow from the exchange is not a sign of panic, but a strong belief in Bitcoin’s future. This development shows that Bitcoin is being adopted by more and more people as “digital gold.”
*This is not investment advice.
