Bitcoin started the week on a strong note, above $30,000 after a quick gain. The market participants driving this trend are taking their bitcoins off centralized exchanges as investor confidence in this platform has continued to diminish.
- Bitcoin held at exchange addresses has been on a permanent decline in the wake of the COVID-19 crisis. According to the latest Glassnode analysis.
- In fact, the numbers fell 11.7% all the way to 2.27 million BTC, the lowest level since December 21, 2017.
- This trend is usually seen as bullish for the underlying asset.
- Further validating this trend is the decline in the “whale exchange ratio,” an indicator that measures the ratio between the sum of the ten largest Bitcoin transactions to exchanges and the total inward exchange flow.
- CryptoQuant Data Suggest Selling pressure in the market may be waning for the time being as lower values of the “Whale Exchange Rate” indicator indicate that whales are piling up rather than selling significantly more than the rest of the market during these periods. It further stated that the current market situation is similar to the upward cycle of 2019.
- The reason for the recent rally in the bitcoin price was the world’s largest asset manager, BlackRock, which filed an application with the Securities and Exchange Commission (SEC) for a BTC spot fund (ETF).
- The development prompted two other US asset managers — WisdomTree and Invesco — to file new ETF orders last week, with Valkyrie shortly after that.
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