Why Bitcoin Will Easily Surpass $100,000: The Ultimate Proof
Bitcoin transactions from other exchanges to Binance are at record lows. By changing the Exchange to Exchange Flow indicator, the market may gain “increased stability and confidence.”
Bitcoin Exchange Flows Fall to Record Lows: Market Impact
Given Binance's position as the biggest cryptocurrency exchange by worldwide trading volume, this pattern of lower Bitcoin movement is noteworthy.
Wedson cited numerous causes for this pattern. Binance "liquidity consolidation" is a big factor, the expert said. Binance is the largest trading volume exchange, therefore traders don't need to move assets to obtain liquidity.
Wedson highlighted that many market players now prefer to operate directly on Binance without inter-exchange moves due to this simplicity.
Second, stablecoins like Tether (USDT) and USD Coin (USDC) have limited Bitcoin's exchange transfer middleman function.
BTC was formerly a bridge currency. However, stablecoins, which have reduced volatility and transaction costs, are increasingly favored for such transactions, reducing Bitcoin's use.
Finally, the analyst linked the falling Bitcoin flow to “growing confidence in both Binance and the broader cryptocurrency market.” Written by Wedson:
Binance received massive quantities of BTC during dumps, signifying fear and widespread selling. Today, higher investor trust in Binance and the market may explain this lessened influx.
Why Is This Good?
The crypto ecosystem is affected by Binance's record low Bitcoin exchange volumes. As the crypto expert noted, BTC's lower fluctuation amid price decreases signals less investor concern.
A more knowledgeable and experienced investor base may augur well for the bitcoin market's long-term stability.
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