Bitcoin reserves on Binance have reached their lowest levels since Jan 2024. This significant drop comes as Bitcoin continues to show resilience despite facing challenges above the $100,000 psychological mark.
According to CryptoQuant, the current reserve level has dipped below 570,000 BTC. This decline is widely viewed as a bullish indicator, as investors often move their holdings to cold storage during periods of long-term confidence. Similar trends were observed in early 2024 when Bitcoin’s price rallied by 90% after a comparable decline in exchange reserves.
Bitcoin’s all-time highs and subsequent dip
Bitcoin recently achieved an all-time high of $108,300 on Dec 17 but struggled to maintain levels above $100,000. It has since dropped below this milestone, trading close to $98,160. Analysts believe the current decline in reserves could be a precursor to another significant price surge.
Ryan Lee, chief analyst at Bitget Research, anticipates that Bitcoin price could surpass $105,000 once market liquidity improves after the holiday season. He forecasts a trading range of $94,000 to $105,000 this week, attributing the current downtrend to holiday-related illiquidity.
Historical trends point to potential Bitcoin price surge
The ongoing withdrawal trend aligns with patterns seen earlier this year, where declining reserves coincided with substantial price gains in Bitcoin. Darkfost suggests this trend reflects growing confidence among investors, who prefer safeguarding their assets in anticipation of long-term growth.
Bitcoin’s recent behavior looks similar to past trends, making people hopeful for another price surge shortly. Some forecasts suggest it could reach $188,000, boosted by a supportive market environment and positive investor sentiment.
Also, On Dec 31, Israel will launch six new Bitcoin-tracking funds that it obtained permission to launch from the Israel Securities Authority, presenting new methods to track Bitcoin’s (BTC) price movements by indexes and methods. While some mirror the U.S.-based ETFs, such as BlackRock’s iShares Bitcoin Trust ETF, another fund seeks to beat Bitcoin.
Unlike individual stocks, these funds are operated by some of the leading firms, including Phoenix Investment, Kessem, IBI, Meitav, More, Ayalon, and Migdal. They can be purchased at the bank or an investment firm at a fee of between 0,25% and 1.5%.
