Recently, there’s been a significant change in the cryptocurrency market as large amounts of Bitcoin (BTC) are being withdrawn from exchanges at an unprecedented rate since early 2023. This withdrawal surge has raised eyebrows among investors and sparked curiosity about the underlying causes.
Bitcoin’s exodus unveiled
In a sequence of articles about Bitcoin on X, CryptoQuant shared their analysis. They noted that the number of Bitcoin withdrawals indicates a period of accumulation. This observation follows a 10% drop in Bitcoin’s price. However, the current market indicators suggest a calming trend, potentially leading to price increases soon.
CryptoQuant reported that an uptick in Bitcoin removals from exchanges might be linked to the forthcoming Bitcoin halving, as per their findings. Usually, this pattern indicates that investors are hoarding more Bitcoin, expecting prices to go up later. As market sentiments shift in preparation for potential market turbulence, the increase in withdrawals serves as a sign of this transition.
🧵 #Bitcoin withdrawals from exchanges reached their highest level since Jan 2023, indicating a significant accumulation phase.
Also, recent metrics show a cooled-off market post a 10% decline last week, suggesting potential for a price increase.
See our analyst’s insights ⬇️
— CryptoQuant.com (@cryptoquant_com) April 17, 2024
Recently, there’s been a significant decrease in the use of leverage in cryptocurrency trading. The open interest in derivatives markets has dropped from $18 billion to $14.2 billion. This downturn is seen by analysts as a favorable development for the market, given the previous surge in trading activity.
In addition, the fact that Bitcoin has reached the area where the Short-Term Holder SOPR provides support is indicative of a possible buying chance. Previously, this period has often preceded price increases.
Bitcoin’s price movement
Currently, Bitcoin is priced at around $63,000, marking a slight gain of 0.49% over the past day. The total value of all Bitcoins in circulation has risen by 0.47% to reach approximately $1.2 trillion. Conversely, the amount of Bitcoin traded within the last 24 hours dropped by nearly 19%, to about $36.7 billion. This contrast between price growth and reduced trading activity underscores the intricacies of the current market landscape.
Previously in an article on U.Today, finance critic Peter Schiff identified $60,000 as a significant support point for Bitcoin. He warned that if Bitcoin fails to hold above this price, it could form a “triple top” pattern, potentially leading to a drop down to $20,000.
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2024-04-17 17:12