Bank of America analysts flag bullish signals for Bitcoin

An intensification of cryptocurrency outflows from exchanges and a rise in net inflows into stablecoins signal a bullish market impulse. Bank of America analysts arrived at this conclusion, according to Decrypt.

Experts noted a ‘softening of selling pressure’ with the initiative shifting to buyers of digital assets. As a result, from June 29 to July 26, market capitalization rose by 11%, reducing the year-to-date decline to 56%.

‘Limited supply and continued outflows from exchanges indicate that investors continue to hold positions in the face of a rally in risk assets’, the report says.

Experts pointed to the resilience of the trend despite повышению ФРС ключевой ставки сразу на 0,75%.

Analysts estimated the volume of Bitcoin withdrawn from crypto platforms to cold wallets at about $508 million, Ethereum at about $381 million (data for July 2 to August 1). The first asset rose 19% over this period, the second 56%.

In stablecoins, inflows and outflows alternated. The most notable spike in withdrawals to non-custodial wallets, amounting to $437 million, occurred in late June–early July.

‘The outflow of “stablecoins” from exchanges to personal wallets occurs when investors seek to preserve the dollar value of their assets. This is often relevant during periods of falling prices for digital assets. When investors want to widen their risk appetites, they typically seek to use stablecoins to buy cryptocurrencies’, — the specialists explained.

Earlier, Glassnode усомнились in the continuation of Bitcoin’s recovery rally.

Earlier, experts from the organization предупредили that a reversal in Bitcoin’s price would require additional time.

Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.