Bitcoin Price Fall Increases Buying Momentum, Pushes Exchange BTC Balances To 6-Year Lows
The post Bitcoin Price Fall Increases Buying Momentum, Pushes Exchange BTC Balances To 6-Year Lows appeared on BitcoinEthereumNews.com.
Este artículo también está disponible en español. Following a major price decline in Bitcoin (BTC), market sentiment dropped back to strong levels of fear, indicating that investors are becoming increasingly cautious and risk-averse. Despite this trend, on-chain data analytics provider CryptoQuant has revealed a significant increase in BTC buying momentum, resulting in the Bitcoin balances on various exchanges dropping to six-year lows. Related Reading Bitcoin Reserve On Exchanges Sees Sharp Plunge With ongoing market volatility and the recent decline in Bitcoin, on-chain data has identified a significant shift in the cryptocurrency’s market activity. CryptoQuant’s data has revealed a substantial decline in the total amount of Bitcoin held by various Centralized Exchanges (CEXs) in the market. As of October 2, the Bitcoin balance of centralized exchanges, according to Coinglass, sat at 2.34 million, marking the lowest number in six years. This sharp decline contrasts with the 3.05 million Bitcoin held on exchanges in January this year, highlighting a significant reduction in available supply in just a few months. Typically a low Bitcoin balance on centralized exchanges could be an indication of an impending price appreciation, as fewer BTC available on these platforms can create upward pressure on its price due to the limited supply. The reduction in Bitcoin reserves could also be signaling a shift in investor sentiment from selling to accumulating. Following Bitcoin’s price drop to around $60,000, various exchanges experienced mass withdrawals from investors. In one of its QuickTake blogs, CryptoQuant described this large-scale withdrawal as “the largest outflow of Bitcoin from exchanges since November 2022.” BTC is now trading at $62,395. Chart: TradingView This development also follows the recent increase in Bitcoin accumulation by whales and a rise in the demand for Spot Bitcoin Exchange Traded Funds (ETFs). Additional information from CryptoQuant reveals that institutional investors moved from…
Filed under: News - @ October 6, 2024 4:03 am