The number of Bitcoin on crypto exchanges has been declining as investors withdraw their investments to personal wallets.
According to data from Glassnode up to 2 December, this trend has continued until Bitcoin surpassed the $100,000 psychological price level about 24 hours ago.
Historically, this means that the investors are more bullish about Bitcoin and are getting set for the long ride.
Sign of positive sentiment
The Bitcoin exchange outflow or inflow is a critical indicator in the crypto market. Any of the two has significant implications that can affect the market eventually.
Bitcoin exchange outflow is an indication that investors are withdrawing their coins from exchanges, suggesting that they have no plans to sell in the short term.
This is a major bullish indicator, as investors’ interest in holding their assets shows they have positive sentiments towards Bitcoin.
According to crypto analysts, this indicates that the price of the asset is likely to go higher as Bitcoin price appreciation is usually a direct result of investors holding onto their assets and not selling.
As Bitcoin has surpassed the $100,000 psychological level, another analyst, Titan of Crypto has expressed optimism that the price is on track to $127,000 based on his prediction.
At the time of reporting, Bitcoin’s price is at $101,394 according to Coin Market Cap, and its market dominance is at 54.7%.
Rewarding investors
The increasing price of Bitcoin as a result of rising investor confidence has paid off for most investors.
Data from crypto investment platform IceCap, Bitcoin became the asset with the highest return of investment as of November, with 110% return.
Compared to assets like gold, this is a quick and significant return on investment, which may be what fuels the confidence of more investors.
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