Bitcoin (BTC) is currently navigating through troubled waters, with foreign exchange reserves seeing a significant drop earlier this month. However, despite this price drop, new data from blockchain analytics platform, CryptoQuant hints at a possible bull run for the queen of cryptocurrencies.
Towards an unexpected bull run?
For the past few weeks, bitcoin (BTC), the queen of cryptos, has been going through a period of uncertainty. In the last 24 hours, its price saw a drop of 2.91%, while the trading volume in this period reached $15.4 billion. At the time of writing, BTC is trading at $26,960.
According to data provided by CryptoQuant, the value of bitcoin foreign exchange reserves has fallen by around $7 billion in the past month. ” At least the amount of Bitcoin circulating on exchanges has decreased over the past monthr,” reads a quick post from CryptoQuant.
There has recently been a price consolidation between $26,600 and $27,200 for BTC, with some unusual fluctuations. Separately, data from CryptoQuant indicates that exchanges lost 2,132,000 Bitcoins from their reserves. This decrease indicates that investors are choosing to hold their Bitcoins rather than selling them in large quantities.
Future prospects for BTC
Analyzing past data, it should be noted that the number of deposit transactions on exchanges has been steadily declining since January 2022, reminiscent of the situation in July 2019. Indeed, at that time, the price of Bitcoin had climbed from $5,200 on May 1, 2019 to almost $12,000 on July 1, 2019.
CryptoQuant also points out that the bull run seen in 2019 was likely due to the positive sentiment surrounding the halving event scheduled for May 2020. Based on this, analysts suggest that the Bitcoin halving event, scheduled for 2024, could soon trigger a new bullish season.
Despite the recent price decline, this data suggests a possible upside rally for bitcoin. Crypto investors are watching market developments closely, hoping to seize significant growth opportunities in the future.
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