Reducing the bitcoin inventory of digital currency exchanges
Reducing the bitcoin inventory of digital currency exchanges: Is the mass sale over? Recent data shows that the trend of changes in the bitcoin inventory of centralized digital currency exchanges has declined again. This shows that the willingness to sell among investors is declining.
According to the Quinn Telegraph, buyers' interest in short-term sellers has increased the pressure to buy bitcoin as prices approach $30,000.
Data from the analytics company CryptoQuant shows that since the end of December, the bitcoin inventory of exchange offices has been declining again.
After a period when traders used to send bitcoins to exchanges to possibly sell them and get rid of them to avoid further losses, exchanges now see more bitcoin withdrawals than bitcoin deposits.
This means that the amount of bitcoins transferred from centralized exchanges to personal wallets has exceeded the number of bitcoins entering the accounts of these exchanges.
Between December 7 and 28, 2021, the stock of bitcoin on 21 major cryptocurrency trading platforms increased from 2.396 million to 2.428 million units.
After that, the long-term downtrend resumed. On Monday, however, the stock fell to 2.366 million units, despite prices hitting a six-month low.
Compared with the bitcoin inventory of exchanges, with the price chart of bitcoins in dollars,
Meanwhile, cryptocurrency CEO Ki-Young Ju believes that older whales, despite showing little mobility in recent years, can still spark a reversal in price trends.
Yang Joo wrote on Twitter, noting that institutions have probably been the main buyers of the market since 2020:
These whales appear to have sold their bitcoins to new players on the floor or price ceilings.
Whales have been bought many times on the price floor.
- While this is no secret, the decline in exchange rates now coincides with the tangible demand within the networks of large investors.
- As the CC15Capital Twitter account pointed out this week, the move to the $33,000 floor has been accompanied by the purchase of a multimillion-dollar wallet.
- Since August, the account has accumulated more than $1 billion in bitcoins. It should be noted that even though his initial balance was zero, he did not have any bitcoins before.
- This is largely due to the long-term holders' determination not to sell their assets. Bitcoins that have remained untouched for the past year or more now account for 60% of the total supply of this digital currency.
- The accumulation of whales following bitcoin's fall from a historic high of $69,900 has also been repeatedly observed in statistics.