Bank of America strategists Alkesh Shah and Andrew Moss predict that Bitcoin (BTC)'s impressive 2023 rally will continue.
Bank of America Strategists Think Bitcoin (BTC) Rally Will Continue
This estimate is based on the recent flow of funds between crypto exchanges and personal digital wallets.
In the week leading up to April 4, marking the second largest net Bitcoin exit of the year from crypto exchanges, a total of $368 million in net Bitcoin was transferred to personal wallets.
Shah and Moss believe this trend shows that selling pressure is easing, as investors often move tokens they plan to hold or "HODL" from exchange wallets to personal wallets.
Bitcoin has seen a strong price increase in recent months, gaining 70% in the last quarter and 43% in the past month alone.
Cryptocurrency investor Mike Novogratz shared his thoughts on Bitcoin's rise above $30,000 in a recent interview with CNBC, stating that it was not driven by institutional investors.
John Bollinger, the inventor of Bollinger Bands and a well-known technical analyst, also touched on the subject, suggesting that Bitcoin is on the verge of experiencing a squeeze.
This view was echoed by renowned investor Peter Brandt, who took to Twitter in light of Bitcoin's rise to $29,000, predicting an imminent breakout for the flagship cryptocurrency.
Bitcoin's year-to-date rise has outstripped major asset classes. Some analysts argue that the Fed's prospects for eventual cuts in interest rates favor riskier investments like crypto.
Other theories, often controversial, include the coin's claim to weather the stress in the banking industry or its potential to ward off inflation as a form of digital gold.
“Bitcoin is becoming a very clear safe haven for the many issues we are currently experiencing,” Hong Fang, head of digital asset exchange OKX, said in a statement.
*Not investment advice.