Almost 38,000 BTC left exchanges on October 18 according to data shared by CryptoQuant, one of the most recognised crypto-analysis companies in the market. At current prices, 38,000 BTC are valued at $737.2 million. This is one of the most significant withdrawals from exchanges since June 2022. Moreover, CryptoQuant also shows that the total number of coins held in exchanges continues to fall, which could be linked to lower selling pressure.
38,000 BTC Left Exchanges on October 18
CryptoQuant reports that investors and retail users continue to withdraw funds from exchanges. At the same time, these withdrawals could be related to lower selling pressure. If a smaller number of coins is held on exchanges it means that it becomes less probable for investors to sell their coins in the market.
The company reported that this is the largest outflow of coins from exchanges since June 17, when close to 68,000 BTC left crypto trading platforms. At that time, Bitcoin reached a local bottom below $18,000 for the first time since the bull market that started at the end of 2022.
This comes at a moment in which financial markets are falling. This could have a negative impact on Bitcoin and other digital currencies in the market. There has been a strong correlation between traditional financial markets and digital currencies. Therefore, we could see Bitcoin moving lower in the last quarter of this year.
Could Bitcoin Hit $2 Million?
Another thing that is worth taking into consideration is that analysts remain bullish about the long-term future of Bitcoin. According to Lawrence Lepard, Investment Manager, Equity Management Associates, LLC. said that Bitcoin could hit $2 million in the coming five years.
Bitcoin could continue to grow in the coming years, especially with the upcoming halving event that is going to take place in 2024. Every four years, Bitcoin experiences a halving event in which rewards for miners get reduced by 50%. That means that miners will be rewarded 3.125 BTC rather than 6.25 BTC per block.
Usually, when there is a new halving event, with a lower new issuance of BTC, there could be a larger buying pressure on Bitcoin. This has usually pushed prices higher over the last years, something that could get repeated in the future.
With Bitcoin hitting $2 million per coin as Lawrence Lepard suggests, the market valuation for the largest cryptocurrency would be $38 trillion. At current values, this seems rather difficult to happen considering the current financial situation around the world. Central banks raised interest rates in order to control inflation, nevertheless, price increases remain at record highs in most countries around the world.
The European Central Bank (ECB), for example, is lagging behind when it comes to raising interest rates. Due to this reason, we could see European stock markets continue falling in the coming months if the ECB decides to catch up with other central banks such as the U.S: Federal Reserve (FED), among others.