Key Points
- Bitcoin [BTC] shows resilience as it gets moved from exchanges to cold wallets, indicating investor confidence.
- Bitcoin’s bullish momentum is supported by its increasing demand in decentralized finance (DeFi).
Bitcoin [BTC] is demonstrating a robust performance as the crypto market gears up for a potentially bullish final quarter of the year.
At the time of writing, Bitcoin was trading at $64K, after reaching a peak of $66K three days ago. Despite the slight dip, on-chain data reveals that BTC is being transferred from exchanges to cold wallets.
Investor Confidence in Bitcoin
This trend suggests that investors are accumulating BTC in anticipation of a rally, indicating increased confidence in Bitcoin’s long-term price stability.
The shift of Bitcoin away from exchanges bolsters the bullish perspective, with BTC now trading above the bull market support band.
If Bitcoin can sustain this momentum, it could potentially surpass its all-time highs (ATHs).
Bitcoin’s Strong Fourth Quarters
Historically, Bitcoin’s most robust fourth quarters have followed a bullish September. In 2024, it already reported over 8% gains in September.
This sets the stage for a potential surge to new highs in November.
Bitcoin’s recent price action has also brought short-term holders back into profit. These investors, who have moved their BTC within the past 155 days, are now seeing gains as the price trades above the $63K level.
Another factor supporting Bitcoin’s bullish momentum is the growing demand for BTC in decentralized finance (DeFi). Currently, 1% of Bitcoin’s total supply is locked in DeFi protocols.
This trend is driven by the increasing demand for Bitcoin-based yield and the launch of Coinbase’s new Bitcoin-pegged token, cbBTC.
The reduced availability of BTC on exchanges, combined with its growing use in DeFi, creates a scenario where Bitcoin could see significant price increases in the forthcoming months.
Bitcoin’s current strength, increased accumulation, and rising demand in DeFi suggest a positive trajectory for its price.
If BTC can sustain these trends, it could break new highs before the year ends. Investors are closely watching, expecting Bitcoin to perform even higher as the market enters a historically strong quarter.