Bitcoin Eyes $40,000: Exchange Exodus Sparks Rally Speculation
Bitcoin might surge past $40,000 by year-end due to a substantial movement of over 37,000 BTC (worth $1.4 billion) out of centralized exchanges since mid-November.
This shift toward long-term holding suggests growing demand and reduced selling pressure, especially with excitement building around an upcoming U.S. Exchange-Traded Fund (ETF) launch.
Historically, when assets move out of exchanges, it tends to precede local price bottoms, hinting at a possible medium-term price upswing.
BTC‘s rise above $38,000 early Friday led to gains across the wider crypto market with Celestia (TIA) leading the fray with 14% gains over the past 24 hours.
Overall market capitalization hit $1.5 trillion, a level unseen since May 2022, marking a $400 billion rise since October started.
Analysts speculate that expected interest rate cuts by global central banks in the coming months could draw more capital to various markets, potentially increasing volatility in speculative areas like cryptocurrencies.
Looking ahead to 2024, positive liquidity might emerge in markets, pivotal for substantial bullish activity in Bitcoin and other assets.
READ MORE: Crypto Alert: Treasury Calls for Action Against Illicit Finance
Federal Reserve governor Chris Waller hinted at a slowdown in the economy and a continued moderation in inflation, suggesting potential rate cuts in the next few months if inflation continues its downward trend.
Interest rate decisions significantly influence markets, with higher rates often prompting investors to consider reallocating profits from riskier assets like stocks and cryptocurrencies to more stable investments such as bonds.
Bitcoin’s 1-day technical analysis from TradingView paints a rather bullish picture with the summary and moving average pointing to “strong buy” with 16 and 14 signals, respectively. Oscillators are at neutral with 8.
At the time of wrtiing, Bitcoin is trading at $38,600 after a 2.25% increase in the past 24 hours and has a $21.7 billion trading volume.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
