For months, the BTC price has been stuck in a tight consolidation phase, but it has recently broken above critical support. The urge for organizations and individuals to put their money into an inflation-proof, stateless asset amid rising geopolitical tensions in Europe certainly boosted the move beyond $40,000.
According to Santiment, a crypto on-chain data provider, more investors are transferring their bitcoins from exchanges to cold storage. According to the platform, the amount of currencies held in centralized exchanges has dropped to its lowest level since 2018.
According to the Santiment data, the supply of BTC on exchanges has decreased by approximately 14% in the last two months, illustrating how current macroeconomic fundamentals and rising inflation are encouraging more investors to HOLD.
Low BTC exchange reserves are usually optimistic. Then, as they signal that market participants are unwilling to sell their holdings at present rates. Another encouraging clue is that, despite worsening conditions in Ukraine. Then, and a recent interest rate hike by the US Federal Reserve, bitcoin has managed to maintain its uptrend support.
Despite increased volatility that has driven the price down from its recent high above $41,470. So, the BTC price is poised to conclude the week with $40k support still in place. Analysts are divided on whether the price will continue to rise or fall in the future.
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