The current Bitcoin price is increasing rapidly, and more retail investors are coming into the network to take advantage of every dip in the market.
- Users of cryptocurrency exchanges have withdrawn over 30,000 BTC from their wallets in the past month.
- Despite the increasing number of withdrawn BTC, more retail investors are speedily coming into the industry to get a piece of BTC.
- The recent on-chain data has shown that Bitcoin price will continue to uptrend as long as the $46,000 support level is maintained.
- As the increased demand coming from intuitional and retail investors continues to grow, Bitcoin reclaimed the $50,000 level.
Bitcoin Demands Continues to Increase Rapidly and Its Supply Plunges
As the Bitcoin trend continues to grow higher on all the internet platforms, Bitcoin price has continued to increase rapidly, even though it still displays a little sign of slowing down.
Although the pioneer cryptocurrency maintains a strong ground on the new changes, several industry experts continue to issue a warning of a steep correction to investors.
Some investors have decided to withdraw their coins off the platform, causing a decrease in Bitcoin’s price value on the trading platform. The recent 30,000 BTC withdrawn from a known cryptocurrency exchange wallet has caused the number of Bitcoins available on trading platforms to decline at an exponential rate. This decline has caused a 1.20% drop in Bitcoin.
A study carried out by Arcane Research has shown that investors prefer to hold their BTC for a longer time due to its store of value characteristics. However, the growth of BTC in the lending market can also influence the available supplies of cryptocurrency exchanges. The analytic firm claims that the number of Bitcoin used as collateral in the lending market will surpass 1 million by 2023 if the Defi space continues to expand at the current rate. The recent increasing interest among retail investors has shown the supply shock that Bitcoin is undergoing, and it will surely lead to serious implications on the Bitcoin price.
Willy Woo, an on-chain analyst, strongly believes that BTC price will likely increase as the number of new addresses joining the network continues to increase rapidly per day.
The current Bitcoin transaction history has proved that BTC will likely maintain the $46,000 support zone for a long period. IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model has proven that almost 1.50 million addresses had formerly bought over 760,000 BTC around this price range.