Under the dual impetus of the Federal Reserve's interest rate cut and the generally strong performance of the risk market in October, Bitcoin broke through the $68,000 mark earlier this week, reaching a high of $68,422, a new high since July 30, with a performance that is encouraging.
CEX Bitcoin Reserves Hit Historic Low
The main concern for investors now is whether the Bitcoin rally will continue, as it has risen more than 15% in the past week.
In this regard, Cointelegraph posted a picture on the social platform X yesterday, indicating that the Bitcoin reserves on centralized exchanges are currently around 2.43 million, setting a new historical low. As the Bitcoin reserves on exchanges continue to decline, it may mean that investors are more inclined to transfer Bitcoin to cold wallets, thereby limiting market supply, which may signal a rise in Bitcoin prices.
However, as time goes on, let's see if "Bitcoin reserves on exchanges" can still be used as an indicator to judge the trend of Bitcoin.
According to data from Coinglass, after Bitcoin reached a new high of $73,000 in March this year, its reserves have been declining, but the BTC price has not set a new high, but has been fluctuating.
Therefore, in the short term, this indicator does not seem to be fully consistent with the trend of Bitcoin. The author believes that when Bitcoin's liquidity was not as good in the past, this indicator may have had enough reference value. But with the development of the market, as well as the emergence of the BTC OTC market, futures, and spot ETFs, the reference value of this indicator may be weakening, or at least the correlation has decreased, so investors are urged to evaluate from multiple perspectives.
Analyst: Bitcoin to Break $70,000 in the Next Few Weeks
Regarding the outlook for Bitcoin, Zerocap's investment director Jonathan de Wet expressed optimism in a research report on Wednesday (16), believing that the Bitcoin rally remains strong and is expected to break through the $70,000 mark in the next few weeks:
The technical breakout provides a solid foundation for further upside in Bitcoin, and we expect Bitcoin to reach $70,000 in the coming weeks.
As for the driving factors behind Bitcoin's rise, blockchain expert Anndy Lian summarized that the US presidential election will be held in early next month, and Trump is currently leading Kamala Harris by a large margin, which brings hope for good regulatory prospects for the cryptocurrency sector; on the other hand, major economies including the US, Europe, and China are currently implementing monetary easing policies, which will lead to capital inflows into risk markets including Bitcoin.
