Several Bitcoin holders are moving coins out of centralized crypto exchanges such as Binance and Coinbase, despite BTC prices rising in recent weeks and hovering near the psychological level of $30,000. As of July 28, 30,663 addresses were withdrawing coins from exchanges, although prices were relatively higher, trading around $28,000, compared to around $25,000 registered on June 14, when 39,311 addresses moved coins. Last April 14, when the price of BTC hovered around $30,000, 132,237 addresses withdrew the coin from exchanges. A drop in the number of exchange addresses moving coins to external, often non-credit wallets can be worrying, especially if prices are rising.
The shift raises important questions as to why more and more Bitcoin holders are choosing to store coins on exchanges, despite these ramps being targeted by hackers. Usually, when fewer people are transferring their Bitcoins to external, often non-custodial wallets, it may mean that they are unsure of the growth trend. Therefore, they keep their coins on exchanges to quickly sell them for USDT or traditional currencies like USD or EUR. Even after this change, the Bitcoin community remains bullish. This optimism stems in part from recent classifications from agencies such as the U.S. SEC and CFTC that specifically approve Bitcoin as a commodity subject to capital gains tax. Other digital assets, such as ETH , have not been so categorized, raising doubts among Ethereum holders that US regulators can classify the second most valuable coin as a security . Because of this positive view of the world's most valuable coin, advanced derivatives are being created, such as the planned launch (if approved) of a spot bitcoin exchange-traded fund (ETF) by BlackRock . Comprehensive Bitcoin trading products are already operating in Canada and other parts of the world. Bloomberg bets that the chance of a Bitcoin ETF being approved by the SEC is 65%. Potentially, bitcoin spot ETF from BlackRock might be approved by March 2024.
The bitcoin block 840,000 which will trigger the next halving is currently scheduled for April 17. Coincidentally one month after the hypothetical Bitcoin ETF approval. This might be the catalyst for the next run? Maybe yes, maybe no. Stay tuned because the next eight months will be very exciting and will give us the answer, and make sure you do your own research and position yourself accordingly 😎.
