emerging crypto analyst is saying that demand for Bitcoin remains strong as ever according to a series of on-chain metrics.
In a tweetstorm, the analyst who goes by Dilution Proof lays out a number of clues signaling that the world’s biggest crypto asset by market cap is seeing a massive influx of buying power.Proof points out that Bitcoin’s monthly close was accompanied by large amounts of exchange withdrawals, indicating that investors with deep pockets are buying BTC.
The analyst also observes that BTC’s value continues to rise amid dropping Bitcoin balance on exchanges, suggesting that the leading crypto asset is being taken off the market and creating a supply crunch.he declining exchange balances since last year’s COVID-19 market panic is perhaps the most famous one, and overall still is intact.”A similar pattern can be witnessed at the balances of over the counter (OTC) trading desks. The supply shortage is real; there is a decreasing amount of coins circulating on the market, which means that price must go up to entice HODL’ers to sell The on-chain analyst is looking at the drastic surge in stablecoin reserves on spot exchanges as well, indicating that traders are on standby with large amounts of capital, waiting for an entry point to place their longs.
