In these days when the correction storm in the crypto money markets, which lasted almost all January, began to subside, investors are removing 800 million dollars of Bitcoin (BTC) from the stock markets, according to the information received. Details can be viewed on Kriptokoin.com.
What does it mean for bitcoin?
Despite the deep corrections in the cryptocurrency markets, the general trend is that despite the major corrections, investors are not willing to sell their holdings. Amid the sudden price increase of the flagship cryptocurrency (currently trading at well over $40,000), a total of $800 million worth of BTC has been moved from exchanges. Bitcoin’s sudden price surge of more than $40,000 came as quite a surprise to the cryptocurrency markets (there were also a significant number of on-chain metrics pointing to a further drop in BTC) that failed to recover despite repeated attempts. However, the majority was speculating that the deep decline in the crypto market would deepen further and BTC would fall further below $30,000. Under these circumstances, centralized exchanges constantly faced losses in their reserves, indicating that traders were not actively selling as the majority thought.
The first positive sign for the industry was the “decoupling” of the majority of cryptocurrencies on and off exchanges, with Bitcoin and other cryptocurrencies trading in neutral or positive territory. How do these exits in the stock markets affect the market? Generally, negative exchange flow is considered a good sign for the market because selling pressure is much smaller during periods of large outflows compared to when traders and investors are actively moving their funds to centralized or decentralized exchanges. Since current flows in BTC remain negative, we can conclude that the majority of the market is not looking forward to selling their holdings despite Bitcoin’s negative performance over the past few months. At press time, Bitcoin is trading at $41,983 at $41,725. The cryptocurrency is showing another positive trading day at 0.72%. Previously, Bitcoin jumped 12% in one day, jumping from $37,100 to $41,700 in a matter of hours.
32467
