Arsablog

Bullish sign: More than $700 million worth of bitcoins left the Coinbase exchange last day

نشانه صعودی: خروج بیش از ۷۰۰میلیون دلار بیت کوین از صرافی کوین بیس در روز گذشته

Typically, a bear market takes a long time to end, a bottom is slow to form, and traders’ fear and desperation can last for months. However, from a historical perspective, some analysts consider the departure of a significant amount of Bitcoin from exchanges and the entry of large investors into the accumulation period as an important sign of the beginning of the upward trend of the market.

To Report Nearly 40,000 bitcoins (net) left Coinbase, one of the most popular exchanges among institutional investors, on Tuesday, October 18, according to CNBC, cryptocurrency data.

This withdrawal of Bitcoin is the largest capital outflow among digital currency exchanges since the Great Market Crash in June of this year, the second largest of all time.

Data from the “Exchanges Net Bitcoin Move” indicator shows that investors are withdrawing their holdings from exchanges and shifting from a selling period to an accumulation period.

Graph of Bitcoin Net Transfer from Exchanges
Graph of the net transfer of Bitcoin exchanges (click on the image to view the index in Eurovision).

According to Maarten Regterschot, an analyst at Cryptocoin, the value of bitcoins withdrawn on Tuesday was over $700 million with transactions in batches of 122 bitcoins. According to him, this is a familiar pattern that has been repeated several times during the bullish period of 2021.

Regtreshot went on to state that these transactions were likely over-the-counter (OTC) transactions and therefore may not have affected the price of Bitcoin.

Bitcoin was trading at $19,233 on Tuesday, down 1.5% from the previous day. Ethereum price also decreased by 1.7% in the same period and reached $1,301. Both assets have been moving in a narrow range with small fluctuations over the past month.

While the Bitcoin-stock market correlation has declined from its all-time high last month, the correlation is still near its peak. As a result, the price of Bincoin is still mainly influenced by macroeconomic factors such as the release of key economic data (inflation rate) and the monetary policies of the Federal Reserve Bank of America. Of course, the unusually low volatility of Bitcoin’s price has attracted the attention of the digital currency market in recent days.

Clara Medalie, Director of Research at Kaiko Collection, said:

Bitcoin has not had any significant movement since early June and the price fluctuates in a smaller range than before. Given the current lows of the Bitcoin price, trading volume has remained relatively resilient since the price peaked last year. Contrary to the ever-increasing decrease in volatility in September, the volume of transactions has not decreased significantly.

On the other hand, the main indices of the stock market were bullish on Tuesday morning. According to the FactSet report, the performance of stocks of companies active in digital currencies was mostly positive on this day. Of course, with the exception of Silvergate Bank, whose earnings were weaker than expected on Tuesday amid investors’ recent lack of interest in the digital currency market.

source

Leave a Reply

Your email address will not be published.