Analysts are optimistic that this reduced supply could help Bitcoin retest and possibly surpass the $60,000 mark by the Q4 of 2024.
Recent crypto market analysis by Altcoin Buzz has revealed some interesting trends.
According to the analysis, a key factor that could drive Bitcoin's price rally is its dwindling presence on crypto exchanges, setting a new low. Data from CryptoQuant shows a 133% decline in Bitcoin reserves since January 1st, leaving only 2.62 million BTC on major exchanges. This suggests that investors are shifting their assets to cold storage, signaling a long-term bullish sentiment.
Highlighting this phenomenon, Marty Party on X noted that major exchanges like Coinbase and Binance are seeing decreasing reserves, with large quantities of Bitcoin being moved to cold storage. This shift is seen as a positive indicator for Bitcoin's price as it reduces the potential for massive panic sales and makes the market more resilient.
In other news, positive movement was observed for Ethereum as its price rose by over 2% amidst a broader market recovery. U.S. spot Ethereum ETFs recorded an inflow of $5.9 million on August 28th, marking the first significant inflow since mid-August. BlackRock's Ethereum ETF led the way with an $8.4 million inflow, indicating growing institutional interest in Ethereum. However, Grayscale's Ethereum ETF continued to see outflows, losing $3.8 million on the same day.
The analysis also covered other big crypto news, including the launch of the Kaia blockchain mainnet. This Layer 1 blockchain is a product of major Asian messaging apps Kakao and Line. It aims to revolutionize the Web3 user experience with its ultra-low gas fees, 1-second finality, and deep integration with Kakao and Line's messaging platforms, boasting a combined user base of over 250 million people.
In another development, South Korean tech giant Naver has partnered with Chiliz to launch its first crypto wallet, the Naver Pay Wallet, targeting over 33 million users. This wallet is designed around utility and loyalty, allowing users to hold cryptocurrencies and NFTs. Chiliz's founder, Alexandre Dreyfus, highlighted that this partnership marks a crucial step in integrating blockchain technology into mainstream digital services.
Finally, the analysis noted TON Coin's resilience despite the arrest of Telegram CEO Pavel Durov. According to Ryan Lee of B.Reat Research, TON Coin's recent 20% drop reflects Bitcoin's struggles rather than a severe crash. The token has outperformed Ethereum this year, thanks to strong community support and minimal negative sentiment. Crypto VCs like Alex Felix of CoinFund and Matthew Graham of Sino Global Capital remain bullish, citing TON's solid fundamentals and growing user base, which recently surpassed 50 million accounts. Many market analysts anticipate TON could slightly outpace the broader crypto market, with price targets between $6.50 and $7.
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