Data shows investors remove BTC from exchanges, reducing sell-off risk
While the cryptocurrency industry waits for a huge shift to shake things up, experts are searching in all conceivable ways to predict the next move of Bitcoin, the leading digital asset.
The presence of this token on crypto exchanges and the volume with which it travels toward and away from these platforms is one indication that may provide insight into the future of Bitcoin.
According to statistics given by market intelligence firm Santiment on October 19, exchanges recently experienced a daily outflow of 40,572 BTC, the greatest daily quantity of Bitcoin to exit trading platforms over the last four months.
Taking into account the price of Bitcoin at the time of publication, this indicates that $778.46 million worth of BTC left exchanges on October 18, being the highest outflow since June 18.
As the site said, “the supply of coins on exchanges has decreased to 8.48%” — the lowest level since November 2018 — indicating that a declining supply of a token on exchanges signals a lesser likelihood of a future sell-off.
This outcome may enable investors to heave a sigh of relief, since recent technical analysis (TA) signs have not been favourable for Bitcoin, matching the cryptocurrency’s adverse price moves during prior market collapses.
It would also validate the predictions of those experts who remained positive on the first cryptocurrency, anticipating it to still make a substantial upward surge and “soon surprise everyone.”
According to CoinMarketCap statistics received by Finbold on October 20, Bitcoin is now trading at $19,187, representing a gain of 0.28% over the last twenty-four hours and of 4.06% over the previous week.
Currently, the market capitalization of the digital asset with the biggest market capitalization by this metric is $367.61 billion, surpassing prominent businesses such as JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC), and Walmart (NYSE: WMT).