Bitcoin Volatility Looms As Exchange Reserves Plunge And Dormant Coins Awaken
The post Bitcoin Volatility Looms As Exchange Reserves Plunge And Dormant Coins Awaken appeared on BitcoinEthereumNews.com.
Bitcoin is still trading around $84,000, but exchange balances fell to over 15,000 BTC in the past week. Short-term holders with approximately 170,000 BTC are now actively trading, which is typical before large BTC price fluctuations occur. Bitcoin ($BTC) is trading above $84,000, but various on-chain signals suggest the market may be on the verge of a significant change. As reported by the popular crypto analyst Ali Martnez, over the last week, more than 15,000 BTC were withdrawn from centralized exchanges, decreasing the supply of available assets and limiting the liquidity in trades. The exchange reserves have continued to decrease from approximately 2.438 million BTC on April 13 to 2.423 million BTC. This usually precedes the bullish trend as the number of coins available for sale in the market decreases. But exchange outflows alone do not imply outward pressure on its own. Meanwhile, daily activity in Bitcoin reaches significant levels, with almost one million active addresses, according to CryptoQuant. While this is a stable number of networks, there aren’t signs of increased activity as exhibited during a significant breakout. Source: Cryptoquant This is especially the case now that the flattening address trend provides traders with signals they can use to gauge a given sentiment. In any case, these sorts of price booms can falter without any increase in the number of active participants or new foreign investment. Dormant Holders Trigger Market Alarm The activity of short-term holders was a major concern. This means that recent activities have seen the movement of funds that were amassed between three to six months ago, at least 170K Bitcoins. Historically, such wallet cohorts have specified significant turning points for Bitcoin as an asset. CryptoQuant analyst Mignolet noted that the activity of this group has been a previously bearish signal that often presages both up…
Filed under: News - @ April 18, 2025 8:16 pm