Bitcoin (BTC) surged past the $70,000 mark once again on March 25, marking its first return to this level since March 15, as reported by CoinMarketCap. This resurgence in price coincided with a notable drop in Bitcoin supply on the Coinbase cryptocurrency exchange, reaching a nine-year low of 344,856 BTC on March 18. This suggests that investors have resumed accumulating BTC off exchanges. This decline in BTC reserves on Coinbase has not been seen since 2015, according to data from Glassnode.
Additionally, the total Bitcoin balance in accumulation addresses, which are addresses holding over 10 BTC with no outgoing transactions or ties to centralized exchanges and mining firms, has soared to over 3.2 million BTC, nearing a record high. This trend further supports the idea of increased accumulation. On March 22, Bitcoin inflows to accumulation addresses reached an all-time high of 25,300 BTC, indicating that prominent investors are likely anticipating further price increases following the recent 15%-20% decline from the all-time high of approximately $74,000.
Furthermore, data from CryptoQuant reveals that Bitcoin reserves on all exchanges hit a three-year low of 1.92 million BTC on March 25. This suggests that there may still be room for the price of Bitcoin to rise, considering the historic lows in BTC supply on exchanges and the significant inflows into exchange-traded funds (ETFs), which have already attracted billions of dollars.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.