Home News Bitcoin exchange supply hits a 6-month low as accumulation continues

Bitcoin exchange supply hits a 6-month low as accumulation continues

519
0

The volume of Bitcoins on cryptocurrency exchanges fell to a six-month low, according to the analytical service Santiment. According to analysts, this should be seen as a “promising sign” that indicates a reduced risk of larger cryptocurrency sales. Bitcoin stocks on crypto-exchanges began to decline in mid-May after the collapse of the crypto market. When the coin fell in price to $ 30 thousand.

Earlier this year, there were already large sales of Bitcoin associated with a negative information background. Tweets by Elon Musk criticizing the cryptocurrency, as well as statements by Chinese regulators.

However, experts believe that the low supply of the coin on the exchanges is more of a plus, not a minus.

Accumulation of digital coins by “whales”

Usually, a decrease in Bitcoin stocks on crypto exchanges indicates the accumulation of digital coins by large holders (the so-called “whales”). In June, Santiment analysts reported that the whales continue to buy cryptocurrency.

Bitcoin millionaire-level whale addresses containing between 100,000 and 10,000 coins have continued to accumulate significantly this month. These addresses accumulated 60 thousand BTC, which was the highest daily surge in 2021. Analyst firm Santiment notes that over the past six weeks, whale addresses have added 100,000 BTC and contain a total of 9.12 million coins. This trend once again confirms the desire of investors for long-term storage of cryptocurrency. They are confident that the real value of Bitcoin is much higher than what we are seeing now.

In addition, the recent drop from ~ $ 36K to the current level below $ 35K is due to the very low trading volume. Which observed during the celebrations of US independence. The inflow and outflow of Bitcoins from exchanges during this period registered at least at 2021. And the supply of Bitcoins on exchanges fell to a minimum since January 2021.

However, according to experts, if you look at the situation in a more balanced way, then these factors should considered tactical and not taken as a guarantee that the market is finally returning to the growth trajectory.

Bitcoin price in the long term

On Monday, July 5, Bitcoin fell 6%. The market capitalization of the cryptocurrency is currently $ 633 billion with daily trading volumes of $ 25.8 billion.

Bitcoin has been under pressure since miners have started to leave the country due to stricter regulation in China. Four Chinese provinces have already enacted a complete ban on cryptocurrency mining, and local banks and other financial institutions have been banned from conducting transactions related to digital assets.

It is difficult to predict the price of a coin based on this data alone, as there are many other factors to consider.

At this point, $ 30,000 will be the level to watch out for on the downside. Any drop below this level could trigger a further drop to $ 25,000.

It is difficult to say when Bitcoin will be able to break out of this phase of stagnation, but if the ratio of the flows of funds is acceptable, this may not happen for a while.

Although on the horizon of the coming weeks, the technical situation really looks bullish.

Previous articleEthereum (ETH) price can gain 40%, argues analyst as London fork nears
Next articleBitcoin volatility will always disappoint some investors: Michael Saylor