Data Shows Investors Are Taking BTC From Exchanges And Lowering The Risk Of Selling In The Future

While the cryptocurrency sector is still waiting for a massive change to change, analysts are looking into all possible directions as they try to predict the next move for the leading digital asset – Bitcoin (BTC).

One indicator in particular that could indicate what the future holds for Bitcoin is the amount of this token in cryptocurrency exchanges (or lack thereof), as well as the volume in which it is moving toward and away from these platforms.

As it happens, exchanges recently saw a drain of 40,572 BTC in a single day, the largest daily amount of Bitcoin leaving the exchange in the past four months, according to the data. Foot By market information companies feelings On October 19.

The amount of bitcoin on the exchange. source: feelings

Given the price of Bitcoin at press time, this means that $778.46 million worth of BTC left the exchange on October 18, the largest outflow since June 18.

Less chance of sales?

As the platform added, “the supply of coins on exchanges has decreased to 8.48%” – the lowest level since November 2018 – and noted that the reduced supply of tokens on exchanges indicates a lower risk of selling in the future.

This development may allow investors to breathe a sigh of relief, given that some technical analysis (TA) indicators have not looked good for Bitcoin lately, similar to the bearish price movements during the previous market crash.

It will also confirm the expectations of analysts who have remained bullish on the first cryptocurrency, expecting it to continue its massive rally and “surprise everyone soon.”

Bitcoin price analysis

Meanwhile, Bitcoin is trading at $19,187, showing an increase of 0.28% in the past 24 hours, as well as 4.06% compared to the previous seven days, according to CoinMarketCap The data was retrieved by Coinphony on October 20.

Bitcoin 7-day price chart. source: CoinMarketCap

As it stands, the market capitalization of what remains the largest digital asset according to this indicator is currently $367.61 billion, beating major players such as JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC), and Walmart (NYSE: WMT).

warning: The content of this website should not be considered as investment advice. Investments are speculative. When you invest, your capital is at risk.

After investors take BTC off the exchange and reduce the risk of selling in the future, data appears first on Coinphony.

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