Will Bitcoin Cross $65k Soon? Here are Two Bullish Signs
Bitcoin sees two significant bullish signs, an increase in outflows of bitcoin from exchanges and an increase purchase of 6,573 BTC by US spot ETFs this past week
According to Coinglass data, there is a significant outflow of Bitcoin from exchanges. Over the past sixty days, nearly 100,000 BTC have left the confines of trading platforms, a trend that has many speculating about a bullish shift in the market.
Moreover, this departure is particularly noteworthy given the relatively stagnant exchange balances, which have been hovering around the 2 million mark for years.
Notable Shifts in Bitcoin Market Sentiment
Data from Glassnode, CryptoQuant, and Coinglass paints a consistent picture, with exchange balances consistently remaining around 3 million, 2.7 million, and 2.3 million BTC respectively.
Furthermore, the lack of shift despite the substantial outflow suggests a deliberate strategy by large investors, commonly known as whales to accumulate the asset outside of exchange platforms. The implications of this behavior are potentially bullish.
The recent influx of Bitcoin into US Spot ETFs further strengthens this narrative. The purchase of 6,573 BTC by ETFs this past week, exceeding the miners’ production of 3,150 BTC, suggests a strong vote of confidence in Bitcoin’s future from institutional investors.
Historically, a decreased supply on exchanges has often preceded significant price increases. Reduced asset availability increases its scarcity, making it more valuable and potentially driving up its price.
MicroStrategy Profit Grows to $6.1B From Bitcoin
MicroStrategy, the business intelligence software firm, has reported a significant increase in profit to $6.1 billion as Bitcoin’s value reaches a new high of over $63,000. The company recently announced the acquisition of 7,420 BTC for approximately $458.2 million, expanding its Bitcoin treasury.
Additionally, this acquisition brings MicroStrategy’s total Bitcoin holdings to 252,220 BTC, with a total investment of $9.9 billion at an average price of $39,266 per BTC.
The latest move has resulted in an unrealized profit of nearly $6 billion on MicroStrategy’s Bitcoin holdings, showcasing the substantial gains the company has experienced since starting its Bitcoin acquisition strategy.
Furthermore, this impressive profit has been achieved despite market volatility, highlighting the resilience of MicroStrategy’s investment strategy.
As of September 19, 2024, MicroStrategy reported a Bitcoin yield of 5.1% quarter-to-date and an impressive 17.8% year-to-date. This outstanding performance further emphasizes Bitcoin’s potential as a valuable asset class and solidifies MicroStrategy’s leadership in the field.
Moreover, the recent acquisition follows MicroStrategy’s pattern of aggressive Bitcoin purchases. Just a week prior, the firm disclosed a significant acquisition of 18,300 BTC, amounting to approximately $1.11 billion at an average price of $60,408 per BTC.
