A popular crypto analyst says one under-the-radar Bitcoin (BTC) metric is approaching a positive trend that’s been unseen for years.
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 first time in five or six years.
“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 one day ago and one week 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.
I
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/DM7/Sensvector
Source: https://dailyhodl.com/2022/07/07/under-the-radar-metric-flashing-green-for-first-time-in-years-could-bode-well-for-bitcoin-says-investanswers/