An 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.
Dilution 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.
“So is there still demand for bitcoin then?
Short answer: yes
Slightly longer answer: let’s look at some trends
The declining exchange balances since last year’s COVID-19 market panic is perhaps the most famous one, and overall still is intact.”
Source: Dilution Proof/Glassnode