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Analysts from market information company CryptoQuant Note Current patterns in Bitcoin (BTC) metrics indicate potential changes in market dynamics.
Bitcoin price experiences short-term fluctuations
After a period of steady decline, spot exchange reserves saw a notable rise, reflecting an inflow of 20,000 BTC. This increase indicates that more Bitcoin is being deposited into it ExchangesWhich often indicates an intention to trade or sell.
This type of behavior could add more selling pressure to the price of Bitcoin, which has fallen approximately 7% over the past two weeks, indicating a potential early signal of a short-term rally. Volatility.
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At the same time, net flows across all exchanges became positive, with a net increase of 15,800 BTC. This reversal of the negative trend prevailing in recent weeks indicates this Inflows To exchanges now exceed outflows.
When this shift is combined with rising reserves, it enhances the potential for increased trading activity or profit-taking by investors, according to a CryptoQuant analysis.
While the broader market trend has favored accumulation and self-conservation, these recent changes may reflect growing caution among investors, who may be preparing to take profits or brace for a potential price correction.
Furthermore, a report by Bloomberg highlights a key metric measuring investor interest in Bitcoin from South Korea, which has risen to a four-month high amid ongoing political unrest in the East Asian country.
Trading volumes rise with the emergence of the political crisis
This metric, known as “Kimchi Premium,” measures the price gap between Bitcoin on the South Korean exchange Upbit and Coinbase. Recently, this premium has risen to the 3-5% range, indicating increased demand from South Korean investors.
per a reportSouth Korea’s political landscape has been turbulent, especially in the wake of President Yeon Suk-yeol’s brief and controversial declaration of martial law earlier this month, which lasted just six hours before it was rescinded.
The National Assembly subsequently dismissed Yoon on December 14, suspending his powers and elevating Prime Minister Han Dak-soo to the position of acting president. In another development, Parliament voted to impeach Han as well, setting a historic precedent for an acting president in South Korea.
This political turmoil has rocked financial markets, coinciding with growing economic challenges and rising nuclear threats from North Korea. The South Korean won also saw a decline of 0.35% against the US dollar.
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According to Bloomberg, South Korea remains one of the most active retail markets for cryptocurrencies Trading volumes In Korean stock exchanges often exceed those in traditional stock exchanges.
Ki Young Ju, founder and CEO of CryptoQuant, noted that corporate accounts are not allowed on Korean cryptocurrency exchanges, meaning the vast majority of cryptocurrency activity in the country is driven by retail investors.
Kimchi Premium has become a well-known metric for measuring retail interest in cryptocurrencies, factors such as strict controls on the currency and Anti-money laundering Anti-Money Laundering (AML) regulations have contributed to this phenomenon.
At the time of writing, BTC is priced at $93,938 and has seen a 2.5% decline over the past 24 hours, with its closest support level at $92,000 serving to halt further declines for the top cryptocurrency on the market.
Featured image of DALL-E, chart from TradingView.com
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