Bitcoin Investment Addresses Decline

In a Quicktake analysis published on the CryptoQuant platform, CryptoOnchain highlighted a decrease in the number of Bitcoin wallet addresses sending funds to centralized exchanges. According to the data, the number of addresses depositing BTC to exchanges has dropped to its lowest level since 2017. This indicates that spot investors are choosing to hold their Bitcoin rather than sell, signaling expectations of a near-term price increase.  

BTC Tests $97,000

BTC surpassed $97,000, reaching its highest level since February 20. BTC is supported by expectations of a potential U.S. Federal Reserve (Fed) interest rate cut. Lower interest rates reduce bond yields, boosting interest in riskier assets like BTC. Investors are turning to cryptocurrencies and stocks in pursuit of higher returns.  

Crypto analyst PlanB noted that the next critical resistance level for BTC is around $97,530. Bitcoin is currently trading slightly above $97,000. A clear close above $97,500 could strengthen the likelihood of Bitcoin reaching a new all-time high (ATH) in the near term. As a reminder, Bitcoin’s current ATH is $108,786, recorded on January 20.  

Crypto analyst Doctor Profit suggested that Bitcoin’s local bottom for this cycle may have been $74,508, seen on April 6. The current price is only 11.3% below the ATH. The analyst noted that BTC has formed a strong monthly bullish candle and is trading above the Ichimoku Cloud indicators, which present a positive outlook for BTC.  

Additionally, analyst Credible Crypto, based on the Golden Ratio Multiplier model, predicted that Bitcoin could reach $124,000. As of writing, Bitcoin is trading around $97,000, up 3.3% in the last 24 hours.  

BTC Signals Strong Bullish Momentum

Backed by technical indicators and macroeconomic developments, BTC is flashing strong bullish signals. The decline in addresses depositing to exchanges shows that investors are opting to hold rather than sell. However, breaking the $97,500 resistance remains critical for a new ATH. 

—This is not investment advice.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Investors Face Resistance: Wallet Addresses at 2017 Levels appeared first on Coin Engineer.

In a post on X on February 15, PlanB explained that his reason for moving his Bitcoin into spot ETFs was to manage them like stocks and bonds. He stated that he wanted to avoid the complexity of managing private keys, saying:

“I guess I am not a maxi anymore.”

No Hassle with Private Keys = “Peace of Mind”

PlanB mentioned that not having to deal with private keys gives him peace of mind. While Bitcoin advocates strongly encourage users to hold their own private keys instead of relying on centralized exchanges, self-custody also comes with the responsibility of protecting those keys from hackers, thieves, and other threats.

In 2024, blockchain security firm Cyvers reported that hackers stole a total of $2.3 billion in 165 separate incidents, marking a 40% increase compared to 2023. For individual investors, protecting private keys has become a significant security concern.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

On the other hand, Lucas Kiely, Chief Investment Officer at Yield App, stated that from a returns perspective, spot Bitcoin ETFs, futures ETFs, and direct Bitcoin investments are essentially the same, with the only difference being ETF management fees.

Bitcoin ETFs See Massive Demand!

Demand for spot Bitcoin ETFs is growing rapidly. Bitwise Investment Chief Matt Hougan predicts that U.S. spot Bitcoin ETFs could see inflows of $50 billion in 2025.

“So far, so good. Spot Bitcoin ETFs saw $4.94 billion in inflows in January, which annualizes to around $59 billion.”

According to Hougan, Bitcoin ETF demand is expected to surpass 2024 levels.

Tax Implications and Debate

PlanB’s move to ETFs has sparked debate among his followers, with some questioning tax implications. However, the analyst clarified that his tax residency is in the Netherlands, where there is no capital gains tax on realized profits.

Instead, the Dutch tax system applies a wealth tax based on unrealized capital gains. A 6% assumed return is taxed at 30%, effectively resulting in an annual tax of around 2% of total net wealth.

PlanB’s transition to Bitcoin ETFs has stirred significant discussion in the crypto space, leaving many wondering if other major investors will follow suit.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post PlanB’s Bold Move: Transfers All Bitcoin to ETFs! appeared first on Coin Engineer.