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Bitcoin Traders Anticipate Extended Gains
Exchange reserves hitting new lows amid recent macro tailwinds have opened up bullish speculations in the crypto market. Backed by the popular “Uptober” trend, traders set sights on a 30-day improved course. Naturally, outflows from centralized exchanges lead to increased prices as whales send assets to other custodians, while inflows indicate a tendency towards sales. This is due to the ease of a sale on centralized crypto exchanges.
Historical data also show that when reserves are weakened, Bitcoin price tends to soar and vice versa. CryptoQuant data predicts a continued momentum because the recent spike is driven by increased demand among institutions. From spot Bitcoin ETFs to strategic treasury reserves, corporate holders are becoming more exposed to the asset class.
Last week, Bitcoin institutional volume hit new highs not seen in months due to macro U.S. factors as investors turned to crypto assets. Whale numbers also tilted higher, sending the asset to a new all-time high. At the time of writing, the Bitcoin price remains above $124,000.
“This suggests that the rally is being driven more by genuine demand and hodling behavior. In other words, the price increase is not occurring alongside a speculative selling wave but rather on a foundation of reduced selling pressure. In the short term, this backdrop supports the upward trend. Yet, if large inflows into exchanges suddenly appear in the coming days, it could be a sign that major players are preparing to sell.” CryptoQuant added.
 
With Strategy, Metaplanet, and other firms boosting holdings, Bitcoin traders anticipate more outflows from centralized exchanges. In the last 30 days, traders’ unrealized gains topped new highs, adding to the market frenzy. The United States government shutdown expectedly drove inflow to the crypto market, taking the asset to double-digit gains.
Meanwhile, other assets like Ethereum (ETH), XRP, and Solana (SOL) also marked decent gains in the same period. Although altcoins have lost the upward pressure seen at the start of the year compared to Bitcoin’s upswing, analysts still opine a positive end to the year.