Bitcoin is gearing up for something big, as record amounts of BTC leave exchanges
As a result of the ongoing market-wide dump, BTC's 24-hour losses lay in excess of the 5% mark.
- BTC's technicals continue to look strong, with many analysts claiming that a year-end target of AUD$350k may still very much be achievable for the digital currency.
- Bitcoin stored across all CeFi exchanges has dropped to its lowest levels in over a year, signalling the return of a more HODL-centric mentality among investors.
- After China's recent mining ban, which resulted in Bitcoin's computing power dropping to all-time lows, the currency's hash rate has made an impressive recovery.
The past few hours have been extremely rocky for Bitcoin, with the world's largest cryptocurrency by total market capitalisation currently being faced with an extremely high level of volatility. The flagship crypto's value has dipped by 4.5% over the last 120-odd minutes. At press time, BTC is trading at AUD$62,900.
In spite of the aforementioned turbulence, long-standing fractal data seems to suggest that Bitcoin is still on track to ascend to the US$250k-$350k range by the end of the ongoing calendar year. The trend was first identified by pseudonymous crypto analyst Bit Harington, who noted that following Bitcoin's earlier price halvings (i.e. 2012 and 2016), the currency registered gains in excess of 600%; however, following last year's event, the digital asset's price has only risen by a modest 70+%, thus leaving a huge window of opportunity for BTC to capitalise on.
Furthermore, in Harington's view, Bitcoin could quite easily double in value in the near future, an assessment that is somewhat shared by many other prominent analysts, who are of the view that BTC could very easily be looking at a near-term price target of US$65,000.
Bitcoin balances across exchanges continue to plummet
As per data made available by crypto analytics provider CryptoQuant, Bitcoin reserves across all crypto exchanges dropped to their lowest levels in over 12 months – to 2.37 million BTC – recently. As a quick reminder, a decrease in BTC reserves indicates that investors may be looking to hold their crypto rather than participating in day trading so as to make short-term profits.
Lastly, it should also be pointed out that Bitcoin's hashrate has made an impressive recovery, with numbers nearly back to where they were before China initiated a blanket mining ban across its borders, forcing the Bitcoin network's computation power to plunge to 84.79 million terahashes per second (TH/s) in early July from 180.66 million TH/s in late May. At press time, Bitcoin's hashrate is hovering around the 140 million TH/s range.
It should be highlighted that over the last year or so, central banks all over the world have continued to pursue extremely loose monetary policies resulting in BTC scaling up to its all-time high of US$65k (AUD$89k approximately) earlier this year. Additionally, with inflation fears looming large on the horizon, it appears as though interest in Bitcoin as a long-term store of value is continuing to rise. Therefore, it will be interesting to see how the rest of the year pans out for the digital asset industry at large.
Disclosure: The author owns a range of cryptocurrencies at the time of writing