Bank of America suggests that there may be further room for Bitcoin's rally in 2023, with the movement of the asset between cryptocurrency exchanges and personal wallets being a key factor.
In the week of April 4, a significant amount of Bitcoin was transferred to personal wallets, leading to the second-largest outflow from crypto exchanges.
This transfer of tokens to personal wallets indicates a potential decrease in sell pressure and may be a result of the continuous regulatory pressure on the industry.
Despite a challenging 2022, Bitcoin's year-to-date growth has exceeded some major asset alternatives, with some arguing that a potential halt in Federal Reserve interest rate hikes could encourage further risky investment action.
As a result, Bitcoin is increasingly being viewed as a safe haven for investors, as evidenced by its recent rise above $30,000 for the first time since June of 2022, and an increase of over 80% since the start of the year.