Is a Bitcoin Price Surge Imminent? "Currently in the Same Growth Stage as Late 2020," Reports Bitfinex

Discover how Bitcoin's recent market activities compare to its historic growth pattern in late 2020, as analyzed in Bitfinex's new report.

With the upcoming Bitcoin halving and increased demand, could we be on the verge of another significant price increase?

Read on for detailed insights and expert analysis of the potential future of Bitcoin prices.

Bitcoin Availability Dwindling on Crypto Exchanges?

In a report released on April 15, 2024, the cryptocurrency exchange Bitfinex highlighted that the current Bitcoin market is mirroring conditions similar to those during the last bullish phase.

According to Bitfinex's analysis, the amount of Bitcoin withdrawn from centralized exchanges reached a total of 6,767 BTC as of April 12, 2024, marking the highest daily outflow since January 2023.

The report also noted a significant reduction in the number of Bitcoins that have not been traded for over a year, suggesting that "the market is at a major turning point."

This trend likely indicates that investors anticipating a price increase are purchasing Bitcoin and transferring it to cold wallets ahead of the upcoming Bitcoin halving expected around April 20, 2024.

The current behavior of Bitcoin holders closely aligns with the patterns observed just before the price surged in December 2020, suggesting that "Bitcoin may currently be at the same stage of growth as it was in December 2020."

Current Price Drop: A "Positive Sign"

The report also mentions that long-term holders, who have owned Bitcoin for more than 155 days, are actively selling approximately 16,800 BTC per day.

Historically, such trends typically last around seven months, suggesting that it might take another six months to reach the peak of this cycle. However, the current BTC price is rising faster than in previous cycles and may reach an all-time high before the halving, indicating a compressed cycle compared to the past.

If the market can effectively absorb the selling pressure from major holders and long-term investors without a significant drop in price, the current situation should be viewed as a "positive sign."

With the upcoming halving this month, the issuance of new Bitcoins will be halved. At the same time, the demand for Bitcoin is expected to increase due to factors like physical Bitcoin ETFs, potentially leading to a price surge post-halving due to the combined effect of increased demand and reduced supply.

>> Click here to read the article on price projections.