With the decline in Bitcoin on centralized exchanges, many analysts believe that the selling pressure for BTC might be over, at least for now. On-chain data also back this up, as the exchange stablecoin ratio fell to its lowest level since February 2023.
The exchange stablecoin ratio measures the amount of BTC held in centralized exchange wallets relative to stablecoins on the exchanges. A low value generally signifies higher buying power and potential for price increases. CryptoQuant data shows it is now at 0.000115 and has been falling since July.
However, there are also concerns that selling pressure might return soon, particularly with the recent BTC movement. A few days ago, 18,536 BTC, which had been dormant for around 2-3 years, moved on-chain. Since then, thousands of BTC inactive for periods ranging from 6 months to 5 years have also been moved on-chain.
Crypto analyst XBT Manager stated that the surge in activity among long-dormant coins generally indicates increased selling pressure, which could cause prices to fall if liquidity is low.
Dormant BTC are becoming active in recent days – CryptoQuant
Nevertheless, BTC appears to be in a good place right now. The flagship asset has increased by 2.6% in the last 24 hours and gained 7% in the past seven days. With BTC currently trading comfortably above $60,000, the question is whether it will fall again.
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