Cryptocurrency News

Bitcoin Held On Crypto Exchanges Decreases Significantly – Analysis.

The number of Bitcoin [BTC] held on cryptocurrency exchanges has been declining steadily since mid-May, offering reassurance that the worst of the market selloff has passed.

At the present levels, Bitcoin’s exchange supply is at its lowest level since early January, consistent with crypto analytics firm Santiment. “The 6-month low is a promising sign, as it generally will indicate that there’s a decreased risk of more major $BTC selloffs,” the analytics firm tweeted earlier today on Monday.

Bitcoin Held On Crypto Exchanges Decreases Significantly - Analysis.

Exchange inflows began to spike earlier in May, which likely served as a precursor to Bitcoin’s steep selloff via the middle of the month. The Bitcoin selloff intensified on 19th May, culminating in a $1.2 trillion decline for the whole cryptocurrency market.

Exchange-flow data is a crucial metric for monitoring Bitcoin’s price trajectory within the short to medium terms. Net inflows often foretell a steep selloff as more investors transfer their holdings from cold wallets, possibly for the aim of selling. Also in May, Bitcoin experienced the most foreseen exchange inflows since the March 2020 Covid crash.

While Bitcoin remains within a firm intermediate downtrend, investors are finding more reasons to be bullish. The speed of adoption in places like Latin America, an anticipated shift in mining from China to other regions, and growing indications that the market has bottomed are all causes for optimism.

On the Other side, analysts still warn of an uncertain outlook within the short term, with several prominent industry voices calling for a steeper correction this year.

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