On-Chain Trends Show That Bitcoin Investors Expect “Rapid Price Appreciation”
- The total transfer volume of Bitcoin to exchanges has decreased dramatically over the past three days.
- Analysts see this as a sign that investors think “rapid price appreciation is ahead.”
Bitcoin Investors Expect Rapid Price Appreciation Soon
Bitcoin has undergone a strong rally over the past few weeks, rallying as high as $13,350. In response to this move, there surprisingly isn’t an influx of investors looking to liquidate their coins for a profit. In fact, on-chain data indicates that investors are not looking to sell their coins.
Crypto-asset analyst “Light” shared the chart below just recently. It shows that the total transfer volume of Bitcoin to exchanges has decreased dramatically over the past three days. He sees this as a sign that these investors think upside is likely:
“BTC owners are holding onto their asset in the face of rapid price appreciation. Deposits to exchanges are at muted levels. Such low deposit activity was last seen in the mid $11,000’s.”
Chart of BTC's price action over the past month with an overlay of "total transfer volumes to exchanges" shared by Light (@LightCrypto). Chart from Glassnode
Sentiment polls also indicate that most investors think that Bitcoin will soon slingshot higher.
Leading financial media outlet Real Vision recently polled its subscribers about their current investments and outlooks on a variety of markets. Their polls found that most investors, over 60% of those polled, think there is a good chance Bitcoin will be dramatically higher a month from now than it is now:
“Most participants saw equities as well as the currencies (USD, EUR, AUD) heading slightly lower. US and EM equities were a little bit better off than their European counterparts (at least fort the 1m horizon). Bond yields are expected to head lower as well. The view on Bitcoin is still very positive despite or maybe because of the recent rally. While Gold is also expected to increase, upside potential is expected to be lower (short term) compared to Bitcoin.”
This Is For Good Reason
This bullish sentiment is arguably for good reason.
Just this past week, it was revealed that PayPal will be embracing cryptocurrencies. The world-famous fintech application will support the purchase and sale of Bitcoin and other digital assets, along with payments made with cryptocurrency.
Analysts think that this move will entice other companies, both in technology and in finance, to embrace Bitcoin. This could result in an influx of new users, driving capital in the space to new highs.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com On-Chain Trends Show That Bitcoin Investors Expect "Rapid Price Appreciation"