Bitcoin analyst records a large withdrawal of BTC from exchanges
According to his data, the outflow for the day was 2138 coins
21.04.2023 - 14:50
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What’s new? A blockchain analyst under the nickname onchained has reported that a total of 2138 BTC worth over $60 million was withdrawn from crypto exchanges in the last 24 hours. He called this outflow “a noteworthy phenomenon to be closely examined and analyzed.” The analyst noted that the trend points to a significant change in market dynamics in the short term. Thus, a potential decrease in the availability of bitcoins for trading on exchanges could have significant implications for the price of the asset.
Onchained’s analysis. The expert specified that the outflow could upset the balance of supply and demand. So, if the supply of BTC for trading decreases while the demand from market participants remains unchanged or even increases, it could create a shortage of available coins. This, in turn, could lead to an increase in the price of the first cryptocurrency.
In addition, a decrease in the availability of BTC on exchanges could affect market liquidity. According to onchained, its decline could lead to an increase in the spread between supply and demand, meaning that buyers would have to offer higher prices, and sellers would have to settle for lower prices to complete the transaction. This is fraught with increased volatility, as trading becomes less efficient and more susceptible to price fluctuations.
Analyst Michaël van de Poppe calls a condition for further bitcoin decline
This will happen if the rate of the asset does not break through to the $28 800 mark
The analyst also said that in a market with limited BTC availability on exchanges, speculative traders may expect prices to rise further and try to accumulate bitcoins for potential future profits. This could create additional pressure on buyers, driving up the price of the first cryptocurrency. Speculative trading can amplify price movements, leading to increased volatility and potentially causing rapid rate changes.
As of April 21, 14:30 UTC, bitcoin is trading at $28 147 on Binance, down by 2,25% in 24 hours and 7,3% in a week, according to aggregator CoinGecko.
Earlier, CryptoQuant reported that in late 2022-early 2023, the market recorded a record bitcoin outflow from centralized exchanges (CEX) for the entire existence of the asset.
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