Bitcoin Surges Above $38,000 as Self-Custody Increases
Bitcoin has experienced a significant price increase, surpassing the $38,000 level. This surge in price coincides with a notable trend in BTC self-custody. The supply of BTC on exchanges has dropped to its lowest point since December 2017, currently sitting at 5.38%. This decline in BTC held on exchanges is likely a result of the declining trust in cryptocurrency exchanges, following events such as the collapse of FTX and Binance’s legal troubles.
The shift towards self-custody methods is seen as bullish for Bitcoin. By taking control of their own BTC holdings, investors reduce immediate selling pressure.
Declining Trust in Exchanges
The decrease in BTC supply on exchanges can be attributed to the undermined reputation of cryptocurrency exchanges. FTX, once led by Sam Bankman-Fried, filed for bankruptcy in 2022, resulting in significant losses for investors. Similarly, Binance faced money-laundering charges and agreed to pay a substantial fine, leading to a loss of trust among users. These events have pushed more individuals towards self-custody methods.
Predictions for Bitcoin’s Future
Analyst PlanB has made optimistic predictions for Bitcoin’s future price. According to PlanB, BTC could reach $65,000 shortly after the next halving event in 2024. Furthermore, the analyst believes that Bitcoin could skyrocket to an astonishing $524,000 by 2027. PlanB anticipates that the next bull cycle will be even more explosive than the one experienced in 2021.
Hot Take: Bitcoin’s Self-Custody Trend Drives Bullish Rally
Bitcoin’s recent surge above $38,000 can be attributed to the increasing trend of self-custody among investors. As trust in cryptocurrency exchanges declines, more individuals are opting to hold their BTC independently. This shift towards self-custody methods reduces immediate selling pressure and contributes to Bitcoin’s bullish rally. Analysts like PlanB have made optimistic predictions for Bitcoin’s future, with projections of $65,000 after the next halving and a staggering $524,000 by 2027. The growing popularity of self-custody suggests that Bitcoin’s upward trajectory may continue.
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