Bitcoin’s aggregate exchange outflows have set a new high for the year. According to on-chain data analytics company Glassnode, this level of exchange outflow volume has been witnessed only a few times.
A New Low in Prices
Since recovering from losses in Q1 2022, Bitcoin volatility has decreased, with the past few days seeing just a little influence. From March 22nd to March 30th, the digital currency had a week of the bullish trend. However, it has been volatile and has seen few shake-offs.
While Bitcoin investors want a rally to the $50k price level, several reasons might impede the digital asset’s progress. Many investors remain cautious in the face of expected rate rises from the Federal Reserve., the Russia-Ukraine armed conflict, and more stringent EU regulations.
However, Glassnode has shown significant profit potential for Bitcoin bulls. According to this company, the aggregate monthly exchange outflow volume has reached 96.2k BTC. Such volume is rarely seen, as it was last seen in March 2020.
#Bitcoin exchange outflow volume recently hit a rate of 96.2k $BTC per month.
Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions through history, with most being after the March 2020 liquidity crisis.
Live Chart: https://t.co/k9wM940HCQ pic.twitter.com/836zjf39Nh
— glassnode (@glassnode) April 4, 2022
Notably, the degree of outflows coincides with the formation of a price bottom, which resulted in the asset gaining considerable value in the fourth quarter of 2020. While this may be a similar situation, it will likely take time to happen.
Pundits Analysis & Price Action
As previously reported by a well-known Bitcoin analyst, Bitcoin is now undervalued. The expert said that Bitcoin is currently trading at a 55% discount, stressing that the next mining incentive halving was approaching and that unexpected market turbulence would not be out of place. Glassnode’s latest discoveries seem to corroborate this analysis.
However, not all analysts share these lofty expectations for the asset class, at least not this year. Mike Novogratz recently advised investors not to hope for large returns this year owing to regulatory uncertainties in the ever-growing and volatile industry.
As of the time of writing, Bitcoin is down 0.96% on the day, trading at the $46,400 price level with an $883 billion market capitalisation.