Bitcoin

Investors are optimistic as bitcoin stocks hit a 1-year low on the stock exchanges

According to Glassnode data, bitcoin stocks on cryptocurrency exchanges fell to a 12-month lowThis coincides with the report of a mass withdrawal of BTC from the Coinbase platform.

Various media reported on June 6 Coinbase can sell its Blockchain Intelligence Arm, Coinbase Analytics, to the Internal Revenue Service (IRS) or to the Drug Enforcement Agency (DEA).According to the news, there was an increase in the BTC’s exit from the stock market.

Investors are withdrawing Bitcoin as a precaution

Like any other regulated exchange, Coinbase has a large amount of user data Due to compliance with the strict KYC guidelines (Know Your Customers) in the USAThe increase in BTC outflow indicates that investors are concerned that the sale can result in your user data being compromised.

Investors are optimistic as bitcoin stocks hit a 1-year low on the stock exchanges
Investors are optimistic as bitcoin stocks hit a 1-year low on the stock exchanges

However, Coinbase said that Coinbase Analytics does not store user data from the exchange and only uses publicly available user data.

Most analytics companies Blockchain monitors addresses that are involved in fraudulent or criminal activities such as security breaches and hacks to track the flow of illegal funds.

Chain data can be critical to prevent profits from illegal operations from washing up in exchangesCompanies like Chainalysis and Cyphertrace use public blockchain data actively monitor the movement of suspicious transactions in cryptocurrencies like Bitcoin.

The Coinbase statement did not prevent BTC from leaving the wallets of the exchange. and, according to Whale Alert, multiple transactions from Millions of dollars that went from coinbase purses to unknown purses.

The record for low reserves on the stock exchanges is a bullish signal

Since March 2020, the outflow of bitcoin from cryptocurrency exchanges has increased steadily, and this shows that investors are less likely to sell their savings soon.

Glass node researcher they said::

“The stock exchange balance has just reached a 1 year minimum of 2,310,466,600 BTC, the previous minimum in 1 year was 2,313,098,855 BTC, it was observed on June 3, 2020.”

$ BTC credit on exchanges

$ BTC credit on the exchanges. Source: Glass knot

Some analysts believe that The increase in withdrawals on cryptocurrency exchanges is an extremely optimistic measure of BTC’s medium and long-term price development.

Generally, the reserves of the exchanges decrease when Bitcoin enters an accumulation phaseFor example, in early 2019, the price of BTC was around $ 4,000 as it started to rise and reached $ 14,000. Bitcoin’s trading balance fell significantly.

Ultimately, buying demand is expected to exceed selling pressure As investors continue to withdraw their money on the exchanges and daily bulk sales are absorbed by bitcoin miners.

If Bitcoin’s equilibrium on the exchanges does not increase in the near future, it increases the likelihood that BTC will enter an appropriate accumulation phase that it can set up for a multi-year bull market.

A confluence of declining bitcoin reserves, declining BTC sales from miners, Increasing institutional acceptance could catalyze the impending upward trend in the cryptocurrency market.

Similar Posts