While Bitcoin Remains Above $ 41,000, BTC Outflows from Exchanges Draw Attention

After stepping into the $42,000 band last week, Bitcoin closed the week at $41,260 with a 9.2 percent increase in value. Bitcoin price is trading above $41,000 as the new week starts with a low albeit selling trend.

As we start the week, one of the important developments is that BTC funds coming out of crypto exchanges are more than entries. The negative net flow of Bitcoin is interpreted as the fact that most of the investors are not willing to sell.

Another interpretation made for the exits from the stock market is seen as the investors losing their trust in the stock markets. Because in recent days, data shows that approximately $ 1.8 billion in Bitcoin, Ethereum and Tether assets came out of the exchanges. The Bitcoin share of these funds is at the level of 700 million dollars.

Two important levels for bitcoin price

Bitcoin price action in 2022 showed that two important points became clear this year. While the average level of $45,000 from these critical points stood out as a region that worked as a resistance, the support formed at $ 38,000 prevented the Bitcoin price from falling to lower levels. After the Fed's interest rate hike, which was one of the most important events of the last week, Bitcoin managed to stay strong. This strengthened the rhetoric that Bitcoin investors had already priced in the interest rate hike situation.

On the other hand, there was a liquidation of approximately 21 million dollars in the buying positions opened by investors who thought that the rise would continue in the upward recovery last week. Bitcoin (BTC) price saw a 4% decrease from its peak levels in the early hours of the day after stepping into the $42,000 band, but with the demand from $40,400, the crypto asset re-entered the $41,000 area.

Blockchain data provider Santiment, on the other hand, pointed out that funding rates have increased rapidly with the movement in weekend transactions.

Bitcoin outperforms altcoins this year

Institutional interest for Bitcoin seems to remain alive despite the general corrective trend in the cryptocurrency markets. Bitcoin has seen proportionally less losses than the largest altcoin Ethereum, based on 2022 movements. While the Bitcoin price has lost about 15 percent since the beginning of 2022, the Ethereum price has seen a loss of around 25 percent.

The fact that Bitcoin has seen less losses than higher-value altcoins is partly attributed to institutional investor interest. So much so that MicroStrategy, the company with the largest Bitcoin asset), continued its savings, while new companies had crypto investments since the beginning of the year. Long-term Bitcoin investors have also preferred to increase their BTC holdings instead of selling them, while uncertainty in the markets has increased.

While the geopolitical conditions in this period create selling pressure in the risky asset class, Bitcoin also gets its share of this pressure. The fact that Bitcoin has increased its correlation with risky assets since last year caused the crypto asset to move away from the safe haven narrative in the first quarter of the year.

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