Indicators Show Investors Buying and Holding Bitcoin

SourceNewsweek
SectorFinancial Markets
CountryMiddle east

Bitcoin has stabilized above $55,000 while maintaining a market cap of $1 trillion for 27 of the last 30 days, and may be about to rally, an analyst believes.Investors appear to be buying and holding Bitcoin in anticipation of future price gains.Lennard Neo, a certified financial analyst and head of research at Stack Funds in Singapore, said the number of Bitcoins transferred from exchanges hit a one-year high since the "flash crash" in 2020, when the cryptocurrency's price dropped about $1,500 in an hour.Lennard Neo, head of research, Stack Funds, Singapore (Photo credit: stackfunds.com) "The spikes in Bitcoin outflows from exchanges typically coincides with upside price action in the following days, as investors continue to accumulate during the dips of this bullish market cycle," he said in a research report."We expect a similar outcome to unfold this time as well. Bitcoin exchange outflows have currently spiked above the 100,000 level, and during 2020, there were only five occurrences," the report said. "However, since the start of 2021, this has happened four times in the short span of a few months. The evidence suggests that investors are not only buying the dip, but also accumulating Bitcoins at a faster rate."Neo said ...read more...