Bitcoin (BTC) is consolidating between $94,000 and $92,000, but investors are moving their assets out of exchanges. The asset has plunged in the last two weeks and was hovering around $93,750 at the time of writing.
Analysis by CryptoQuant official AxelAdlerJr revealed that crypto exchanges are recording very low levels of BTC deposits while investors are moving assets away from the platforms, possibly to their personal wallets. AxelAdlerJr said these trends suggest BTC could see robust price movements in the near term.
According to AxelAdlerJr, crypto exchanges have witnessed around 30,000 BTC daily deposits over the past few weeks, similar to record lows seen in 2016. In contrast, 10-year average daily deposits hover around 90,000 BTC, and this bull cycle’s peak sits at 125,000 BTC, especially when the asset hit the bullish mark of $66,000.
The last time bitcoin’s daily deposit figures were at this low level was during the onset of its major rally.
A decrease in deposits on exchanges could lead to a shortage of BTC on the spot market, triggering positive price movements, per the laws of demand and supply. While low deposits do not guarantee a swift price upswing for BTC, they could create an environment that would trigger positive momentum.
In addition to the plunge in daily BTC deposits on exchanges, traders are moving their bitcoins away from these trading platforms. AxelAdlerJr cited the Netflow-to-Reserve Ratio, a metric that monitors the relationship between net inflows and outflows to exchanges and their total reserves.
When the Netflow-to-Reserve Ratio turns negative, it signals a dominance of outflows from exchanges, meaning BTC is being withdrawn. While the metric is currently negative, the CryptoQuant official noted that the most pronounced negative values were seen at the end of the bear market when traders bought BTC from forced sellers at roughly $17,000.
The post Investors Are Moving Their BTC Away From Exchanges, What Does This Mean? appeared first on CryptoPotato.
Analysis by CryptoQuant official AxelAdlerJr revealed that crypto exchanges are recording very low levels of BTC deposits while investors are moving assets away from the platforms, possibly to their personal wallets. AxelAdlerJr said these trends suggest BTC could see robust price movements in the near term.
Lower Daily BTC Deposits
According to AxelAdlerJr, crypto exchanges have witnessed around 30,000 BTC daily deposits over the past few weeks, similar to record lows seen in 2016. In contrast, 10-year average daily deposits hover around 90,000 BTC, and this bull cycle’s peak sits at 125,000 BTC, especially when the asset hit the bullish mark of $66,000.
The last time bitcoin’s daily deposit figures were at this low level was during the onset of its major rally.
A decrease in deposits on exchanges could lead to a shortage of BTC on the spot market, triggering positive price movements, per the laws of demand and supply. While low deposits do not guarantee a swift price upswing for BTC, they could create an environment that would trigger positive momentum.
Traders Move BTC From Exchanges
In addition to the plunge in daily BTC deposits on exchanges, traders are moving their bitcoins away from these trading platforms. AxelAdlerJr cited the Netflow-to-Reserve Ratio, a metric that monitors the relationship between net inflows and outflows to exchanges and their total reserves.
When the Netflow-to-Reserve Ratio turns negative, it signals a dominance of outflows from exchanges, meaning BTC is being withdrawn. While the metric is currently negative, the CryptoQuant official noted that the most pronounced negative values were seen at the end of the bear market when traders bought BTC from forced sellers at roughly $17,000.
The post Investors Are Moving Their BTC Away From Exchanges, What Does This Mean? appeared first on CryptoPotato.
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