Bitcoin Eyes $40K as $1B in BTC Withdrawals Suggests Bullish Mood
The case for a continued rally in bitcoin (BTC) to $40,000 and higher by the year-end has strengthened, with centralized exchanges recently witnessing a sizeable exodus of coins. The outflow likely represents a bias for a long-term holding strategy, although some of it could have stemmed from Binance's guilty plea. The bias for holding means strong demand and weakening sell-side pressure in the market amid euphoria from an expected launch of a spot exchange-traded fund (ETF) in the U.S.
Exchange outflows have historically marked local price lows, supporting expectations of a medium-term price rise. BTC traded above the $38,800 mark early Friday, leading to gains in the broader crypto market, with some major tokens jumping as much as 5% in the past 24 hours. "The Federal Reserve has paused its rate hiking cycle and central banks around the world are following," Anthony Rousseau, head of brokerage at TradeStation, told CoinDesk in an email. "It's plausible to believe we have reached the heights of this tightening cycle. For risk assets to get a sustained bid we will need to see a path forward with lower rates and an end to Quantitative Tightening."
