Nearly $300 million of BTC moved to exchanges before the recent sell-off
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Answer Nearly $300 million of BTC moved to exchanges before the recent sell-off
The cryptocurrency market is one of the most difficult financial markets in terms of analytical reading, but like others it is subject to a set of indicators and signs that show its possible next movement.
Prior to the recent drop, BTC price was close to plunging into the $19,000 level, but after another failed attempt to break above it, the coin headed south and fell by $1,000 in 24 hours.
According to recent data published by Analytics firm Santiment, there has been a significant rise in the number of bitcoin transferred from cold wallets to cryptocurrency exchanges, which means that a decline in the price of bitcoin was somewhat expected.
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Transferring $278 million of Bitcoin to exchanges before the drop:
After a quiet weekend, as Bitcoin showed a near-stable pattern with no high volatility, Bitcoin fell in no time.
In a previous article on Arab Bitcoin, we indicated how Bitcoin declined from the level of 19,300 to $ 18,100.
Most altcoins then followed suit, with the total market cap dropping by $35 billion.
As we mentioned, this development in the Bitcoin movement was somewhat expected, according to what reported Analytics company “Santiment” and the data it provided.
The company “Santiment” tracked the number of bitcoins stored in cold wallets and exchange wallets and highlighted a surge in converted bitcoins shortly before the price plunged.
Santiment said that this was the largest movement of bitcoins from cold wallets to cryptocurrency exchanges in the past five weeks.
About 0.08% of all bitcoins in circulation, i.e. 14,852.58 bitcoins, end up in exchanges.
To put this large amount in dollar terms, we find that it is estimated at $280 million.
Similarities of the current behavior of Bitcoin to the behavior of 2017:
Despite the bearish price developments in the short term, Mr. Raphael Schultz-Kraft, Chief Technology Officer at Glassnode, listed several major Bitcoin metrics showing very bullish indicators for Bitcoin.
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Some of these metrics include SOPR and MVRV.
The “SOPR” indicator expresses the products consumed with a lifespan of at least 155 days.
It serves as an indicator to assess the long-term behavior of BTC investors.
According to Schultz Craft, the metric was 1620% higher during the 2017 high than it is now.
While the MVRV index only tracks UTXOs of 155 days or older, it is also an indicator that assesses the behavior of long-term investors.
Glassnode’s chief technology officer said the difference between the 2017 and 2020 numbers is 1,340% larger than the former.
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