According to CoinMarketCap, Bitcoin (BTC) is down 4.51% in the past 24 hours, reaching $ 47,407 during intraday trading. The leading cryptocurrency had retreated to these levels after breaking the $ 50,000 psychological price on August 23.
The market analyst stated that this could be triggered in part by a surge in BTC inflows into crypto exchanges, as Lark Davis admitted:
“Bitcoin inflows on exchanges are increasing; this often comes before a drop in prices. So far, the market has absorbed the selling pressure with a price drop of only a few percent. “
When exchanges see high inflows, it is usually bearish as coins from cold stores and digital wallets are liquidated with the primary goal of being liquidated. This increases the pressure to sell and the price drops.
Will Clemente repeated these feelings. The on-chain analyst noted:
“I’m bearish in the short term. A decline in the illiquid supply ratio and coins going public. In addition, some sell whales. “
Crypto trader Michael van de Poppe recently admitted that Bitcoin would have to break the $ 51,000 mark if the upward momentum was to continue, which would cause it to pull back to the $ 44,000 to $ 48,000 level.
Dormant Bitcoin is activated
According to cryptanalysis company Glassnode:
“The amount of Bitcoin supply that was last active 1y-2y (1d MA) just hit a 1-month high of 1,687,319.106 BTC.”
This also signals that more BTC is being postponed for activation on crypto exchanges as these coins are no longer kept in the cold store.
Meanwhile, big companies like Fidelity Investments and BlackRock have acquired large stakes in listed Bitcoin mining companies.
On the other hand, the global crypto market is expected to reach $ 4.94 billion by 2030. The main reasons for this are increased transfers from abroad and the need for transparency in the payment system.
Image source: Shutterstock