BTC Price Eyes $40,000 Soon as Massive Number of Bitcoins Move Off Exchanges

BTC Price Eyes $40,000 Soon as Massive Number of Bitcoins Move Off Exchanges

| Updated
by Bhushan Akolkar · 3 min read
BTC Price Eyes $40,000 Soon as Massive Number of Bitcoins Move Off Exchanges
Photo: Depositphotos

Bitcoin exchange outflows, interest rate cuts, Bitcoin halving, ETF approval are among many factors that could trigger a mega bull run in 2024.

The world’s largest cryptocurrency Bitcoin (BTC) continues to show strength with the BTC price now trading 2.55% up at $38,678, and is now eyeing a move above $40,000. The bullish indicator comes as centralized exchanges witness a sizeable exodus of coins.

According to Glassnode data, investors have withdrawn over 37,000 BTC, equivalent to $1.4 billion, from exchanges since November 17, indicating a trend of investors opting for direct custody of their coins. This outflow suggests a preference for a long-term holding strategy, possibly influenced by factors such as Binance’s guilty plea.

The inclination toward holding reflects robust demand and reduced sell-side pressure, coinciding with optimism surrounding the anticipated launch of a spot exchange-traded fund (ETF) in the US. Historically, exchange outflows have correlated with local price lows, supporting expectations of a medium-term price increase.

BTC Price Eyes $40,000 Soon as Massive Number of Bitcoins Move Off Exchanges

Photo: Glassnode

Anticipated interest rate cuts by central banks in the coming months could attract capital to various markets, potentially leading to increased volatility in speculative sectors like cryptocurrencies, according to some market observers.

With the Federal Reserve pausing its rate hiking cycle and other central banks globally following suit, there is speculation that we may have reached the peak of this tightening cycle. To sustain a significant boost in risk assets, a clear trajectory toward lower interest rates and the conclusion of Quantitative Tightening is deemed essential.

As 2024 approaches, there is a possibility of entering a phase with a net positive liquidity outlook for the markets. Bitcoin, acting as a barometer of net liquidity, would require favorable liquidity conditions to substantiate any substantial bullish movements.

Bitcoin Price Can Touch $63,000 by April 2024

As per the recent report from Matrixport, the BTC price is all set to register gains up to $63,000 by the next halving around April 2024.

According to Matrixport’s report on December 1, Bitcoin is anticipated to follow a bullish trajectory, reaching $63,140 by April 2024. The firm also attributes this sustained 3-year bull market to historical trends, mining reward halving, and favorable geopolitical and macroeconomic factors.

Maintaining confidence in Bitcoin’s potential, Matrixport further envisions the cryptocurrency hitting $125,000 by December 2024. The catalyst will be the upcoming Bitcoin halving as well as institutional adoption.

The recent “Matrix on Target” report from November 22 suggests a high likelihood of Bitcoin surpassing $38,000 by the end of November with an 80% probability. The report also anticipates a rally to $40,000 in December with a 90% probability. Notably, significant trading volumes in the broader crypto market indicate active buying by investors and whales, particularly amidst the hype surrounding spot Bitcoin ETFs.

Bitcoin News, Blockchain News, Cryptocurrency News, News
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