Strategists at Bank of America, one of the largest banking institutions in the United States and the world, suggest that the price of Bitcoin still has the potential to continue growing in 2023.
One of the main reasons for the reasoning of Bank of America strategists is that The number of investors holding bitcoins is increasingAdd to this the scarcity with which Bitcoin was designed, according to its protocol, so the market-leading cryptocurrency could reach new highs this year.
Bank of America strategists Alkesh Shah and Andrew Moss recently published a note with several arguments as to why Bitcoin price could continue a bullish rally.
The No. 1 cryptocurrency on the market, Bitcoin, started this 2023 with a price of $16.500 dollars and, so far, has grown by 87%, surpassing $30.900 per BTC at press time, according to data from Coinmarketcap.
However, although the Bitcoin price has seen significant YTD growth, far outperforming the major investment assets in the traditional market, it seems that the cryptocurrency has not yet reached its peak.
More Bitcoin investors are betting on self-custody
According to Shah and Moss, in the first week of April, Bitcoin investors moved nearly $368 million worth of BTC from their exchange accounts to personal walletsThis move is seen as the second largest outflow of bitcoins from centralized exchanges this year and as a signal of investors' intentions to hold on to their bitcoins for the long term.
According to Bank of America strategists, cited by Bloomberg, the fact that investors are choosing to hold on to their BTC indicates “a possible decrease in selling pressure” for the cryptocurrency and, therefore, an increase in its price on the market.
Another reason why Bank of America strategists believe that crypto investors are moving their BTC to personal wallets is because of the growing regulatory pressure that agencies such as the SEC and CFTC are exerting on companies and businesses in the crypto industry in the United States.
On the other hand, there are those who believe that the tough monetary policy implemented by the Federal Reserve to control inflation is favoring the image of Bitcoin as a more stable safe haven.
Continue reading: 'Bitcoin', the most searched term on Google this last month in the US
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