The leading cryptocurrency is Bitcoin, and in fact the cryptocurrency market in general has recently faced serious volatility. Although increasing volatility means more earnings for crypto traders who are evaluating opportunities, the fall in BTC price in the last 2 days shows that this opportunity is also coming to an end.
Bitcoin Amount Decreasing in Exchanges
The fact that BTC climbed up to $ 9,300 again after reaching the $ 10,000 region indicates that there is a serious selling pressure in the stock markets. The fact that crypto exchanges have significantly reduced their Bitcoin balances is one of the most obvious evidences.
Although the amount of BTC flowing to the cryptocurrency exchanges increased for a short period especially after March 12, it is quite clear that the effect of a serious decline in general could not be avoided.
Exchanges continue to see steady $BTC withdrawals.
Balances down >300k BTC (~$3B) since Black Thursday. Lowest balance held on exchanges since May 22, 2019, nearly one year from today. pic.twitter.com/mGofvh8R41
— Ceteris Paribus (@ceterispar1bus) May 16, 2020
Crypto analyst Ceteris Paribus stated in his tweet published on the data of Glassnode that the amount of BTC in stock exchanges has decreased by 300,000 since March 12. Underlining that this is actually the lowest level seen since May 22, 2019, Paribus gave an important tip to investors.
In fact, the decrease in the amount of BTC in the stock markets shows that investors are avoiding sudden sales and they want to keep their BTC safe for the long term. Investors usually hold BTC or cryptocurrencies on the stock market where they will sell or for short-term investment. This shows that the decreasing BTC balance of the stock markets is a long-term positive sign.