2023-7-30 00:30 |
In the past 24 hours, Bitcoin’s exchange balance witnessed a notable increase of 10,000 BTC. This sudden shift raised eyebrows among market enthusiasts, leading to speculations about possible heightened price volatility.
Prominent blockchain analytics company, Glassnode, validated this development. Consequently, noting that on July 28, BTC’s exchange netflow reached a three-month peak of $9.4 million.
Could Bitcoin Price Volatility Be Imminent?The unexpected surge in Bitcoin’s on-exchange reserves has alarmed investors. Indeed, the primary concern is the potential for a drop in Bitcoin’s price, especially considering its recent dip to $29,000.
An increase in supply on exchanges often hints at an increased inclination among holders to sell BTC, which could, in turn, affect its market valuation.
Ali Martinez, BeInCrypto’s Global Head of News, citing data from Santiment, cautioned investors to brace for possible Bitcoin price volatility spikes.
#Bitcoin | Watch out for a spike in volatility!
A large number of idle $BTC has been exchanging hands over the past 24 hours, which coincides with a 10,000 #BTC increase in supply on #crypto exchanges. pic.twitter.com/k3lKmTjfYC
Interestingly, this growth in BTC’s presence on exchanges is counterintuitive, given the recent trend towards reduced exchange balances. The trend was attributed to the rising popularity of self-custody solutions.
Just two days prior, on July 26, Santiment recorded 1.17 million BTC on exchanges – the lowest since November 2018.
Long-Term Holders Stay the CourseDespite Bitcoin’s recent rebound to $30,000, long-term holders have consistently added to their BTC positions, as evidenced by IntoTheBlock data.
Contrary to expectations, this price increment did not attract short-term holders, who usually capitalize on surging asset values.
Bitcoin Long-Term Holders. Source: IntoTheBlockThis dynamic sharply contrasts with 2019’s scenario when Bitcoin’s price dipped to $11,000, resulting in a surge of short-term holders. Though the persistent accumulation by long-term holders demonstrates faith in Bitcoin, its price might not react favorably.
Historical data from IntoTheBlock suggests that Bitcoin prices rise when short-term holders are in accumulation mode.
BTC Struggling to Maintain $30k LevelAfter reaching a yearly high of $31,500, BTC’s price trajectory has remained largely flat.
Bitcoin Price Performance. Source: BeInCryptoBeInCrypto’s data reveals that BTC’s price dipped 1.8% to a weekly low of $29,045. At the time of writing, Bitcoin was trading slightly above $29,296.
The post Transfer of 10,000 BTC to Crypto Exchanges Raises Concerns Over Bitcoin Price appeared first on BeInCrypto.
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