As bitcoin advances toward $100,000, on-chain data reveals a change in investor behavior.

According to a CryptoQuant analyst, the number of BTC addresses sending funds to crypto exchange platforms has fallen to its lowest level since 2017.

As bitcoin (BTC) edges closer toward the $100,000 mark, on-chain data is revealing a change in investor behavior. After an extended period focused on macroeconomic trends and U.S. inflation figures, attention now shifts to the evolution of the economic cycle and the expected decisions from the FED. Could a reduction in interest rates, as speculated by some crypto analysts, favor risk assets like BTC?

Moreover, it would reduce the yields of traditional fixed-income products, pushing more investments toward cryptocurrencies.

Historic drop in bitcoin deposits on crypto exchanges

According to a CryptoQuant analyst, the number of BTC addresses sending funds to crypto exchange platforms has fallen to its lowest level since 2017. This decline is evident in the graph below, displaying the seven-day average of bitcoin addresses making their first output to exchanges.

As the analyst notes, this indicator is crucial because it reveals the intent of bitcoin holders. A low count, as observed recently, implies that most BTC addresses are not sending their coins to exchanges, perhaps anticipating a strong short-term rise.

“As seen in the chart above, the 7-day average of first time exchange addresses has reached lows not seen since 2017. This indicator is important because it shows the activity of BTC addresses sending coins to exchanges for the first time in a 24-hour period. A low reading suggests that most addresses are not sending their coins to exchanges, which could be a sign of strong hands and a potential preference for holding onto BTC over selling it.”

Indeed, the data available on CryptoQuant’s platform clearly shows that, in recent months, the number of bitcoin addresses making their first output to exchanges has dropped significantly. This signals that a large portion of BTC investors have decided to keep their coins on personal wallets rather than sell them on exchanges.

This observation is interesting in light of the recent performance of the cryptocurrency market. After an extended period focused on macroeconomic trends and U.S. inflation figures, attention now shifts to the evolution of the economic cycle and the expected decisions from the FED.

Could a reduction in interest rates, as speculated by some crypto analysts, favor risk assets like BTC and reduce the yields of traditional fixed-income products, pushing more investments toward cryptocurrencies?

Bitcoin: a bullish signal confirmed by technical analysis?

The BTC price recently crossed the $97,000 mark. It has thus reached its highest level since February. According to Ali Martinez, the next crucial threshold is at $97,530. A clean breakthrough would strengthen the momentum toward a new ATH, the last being at $108,786.

On his side, Titan of Crypto highlights that bitcoin shows a strong bullish monthly candle. He supports that the leading crypto is trading above several Ichimoku cloud technical indicators. These signals back a favorable outlook for the coming weeks. Analyst Burak Kesmeci even mentions a target of $124,000, based on the golden ratio model.

Faced with this momentum, the crypto market anticipates a gradual rise. This would be fueled by:

The potential return on bitcoin thus becomes attractive again for crypto investors.

The combination of on-chain, technical, and macroeconomic signals creates a fertile ground for a new bitcoin surge. The coming days prove crucial to confirm this trend!

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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)