Tech News

Investors Take Bitcoin Off Exchanges as Crypto Winter Settles In

As the crypto winter deepens, only hardcore bitcoin investors still hold their tokens – but not on the exchange.

As the crypto winter deepens, only hardcore bitcoin investors still hold their tokens – but not on the exchange.

Investors in the world’s largest cryptocurrency are going into hibernation mode and on-chain activity fell 13% from a high in November to early July – levels last seen in the bear stages of 2018 and 2019 when Bitcoin was worth less than $ 10,000 – according to a Glasnoid analysis.

The mood of the risk-free market on cryptocurrency exchanges is spreading as investors withdraw their coins and instead deposit them off-line in crypto wallets. According to Glassnode, the exchanges have lost more than 20% of their balance since the January 20 peak.

According to a Glasnode newsletter dated July 4, “Bitcoin market has seen almost complete expulsion of tourists, putting the determination of HODLers on the last line.”

Although several activity levels – a demand indicator – have been declining in recent weeks, there still seems to be a stable holder base, with prices hovering around $ 20,000. HODLers – steadfast investors who refuse to sell – make it clear that Glassnode says the relatively flat transaction activity shows Bitcoin consolidation continues.

According to Craig Johnson, chief market technician at Piper Sandler Company, the key levels to watch for Bitcoin are $ 18,910, a level whose price dropped twice in mid-June and $ 21,557, the highest in late June.

“Of course there are no basics for crypto. It’s just purely worthwhile action, ”Johnson said in an interview Friday. “You’re just going to look at it and say, until you get out of that range – up or down – you’re not going to come to the conclusion that there’s still a trend change. We’re only doing short-term consolidation in the context of the long-term downtrend.”

A close above $ 26,000 or $ 28,000 could finally stop the downward slide that tokens have been introduced since April, Johnson said.

The Bitcoin crash has hit Coinbase Global Inc. hardest as the exchange has lost 450,000 bitcoins in the past two years. Binance, which recently partnered with TikTok creator Khabi Lem and soccer star Cristiano Ronaldo, grew 300,000 bitcoins at the same time, making it the most popular bitcoin exchange per glassnode and TXMC.

Recent interruptions in operations, such as the withdrawal of Coinflex and Vauld and the reduction in the amount of CoinLoan withdrawals, have eroded investor confidence in the exchange. The liquid supply of 223,000 bitcoins increased in June as investors transferred funds from the exchange to the wallet, according to Glassnode data. Of those 223,000, large-scale crypto holders made up most of that outflow from exchanges due to the withdrawal of 140,000 tokens in June. These whales account for about 8.7 million exchange outflows, or more than 40% of the global supply of bitcoin.

“Bitcoin bears are in full swing, and as a result, last resort HOD dealers have come to an end,” Glassnod said.




Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button