• Bitcoin’s recent surge in price has been attributed to a variety of factors, such as the banking crisis and institutional adoption.
• According to Bank of America analysts, there is still potential for more rallies as investors are withdrawing assets from exchanges and moving them to personal wallets.
• The trend of moving tokens from exchanges to personal wallets indicates that investors are confident in BTC’s long-term potential and are not concerned about short-term price fluctuations.
Factors Contributing To Bitcoin Surge
Bitcoin’s recent surge in price has been widely attributed to a variety of factors, such as the banking crisis, the dollar’s fall in dominance, and institutional adoption.
Data From Bank Of America
Recent data from Bank of America (BoA) analysts suggests that this surge might just be starting as there is still gas for more rallies. The analyst reveals a growing trend of investors withdrawing their assets from exchanges and moving them to personal wallets, which is an indication of a long-term bullish outlook for the cryptocurrency as well as room for more rallies.
Potential For More Rallies
Despite Bitcoin recently tapping into a major high of $30,000 up by over 80% since the start of the year, the BoA analysts believe the asset could still hit another major high sooner or later. According to a note from Bank of America strategists Alkesh Shah and Andrew Moss, an amount of $368 million BTC was sent to personal wallets in the week through April 4, coinciding with the second-largest net BTC outflow from crypto exchanges this year.
The report notes that concerns about regulatory crackdowns in the US may have played a role in the recent outflow of Bitcoin from exchanges. Major crypto firms in the US, such as Coinbase and Binance, have faced increased scrutiny from regulators, leading some investors to move their assets off of these platforms. Despite these regulatory concerns,the overall trend still suggests bullish outlook for bitcoin prices.
While some analysts have warned of a potential price correction in the short term, this trend indicates that investors are confident in BTC’s long-term potential and are not concerned about short-term price fluctuations. Therefore it can be concluded that bitcoin still has room for more rallies despite its recent surge