Bitcoin continues to consolidate between $94,000 and $92,000, affected by European and American holidays and year-end profit-taking by investors. The price of Bitcoin has recently dropped, currently hovering around $93,750. CryptoQuant analyst AxelAdlerJr pointed out that the current Bitcoin deposit volume on cryptocurrency exchanges is extremely low, and investors are transferring assets to personal wallets, which may indicate significant price volatility in the short term.
Report analysis shows that the daily Bitcoin deposit volume on cryptocurrency exchanges is only about 30,000 BTC, close to the low point of 2016, far below the average Bitcoin balance of 90,000 BTC on crypto exchanges over the past 10 years and the peak of 125,000 BTC during the 2021 bull market. The low deposit volume on exchanges indicates that users are more inclined to hold assets in cold wallets rather than preparing to sell.
Under the premise of reduced selling supply, this may lead to a market supply shortage and drive prices up. In addition, the Netflow-to-Reserve Ratio for Bitcoin is negative, indicating that the outflow of funds from exchanges exceeds the inflow, suggesting that investors are withdrawing large amounts of Bitcoin to wallets. The situation of buying more and selling less will increase the likelihood of a price rise in the future.
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"MICA Daily｜The 'Hoarding Coins' Trend Reappears, Increasing the Probability of Bitcoin Rising" was first published on (Block).
