Market status of BTC
10,000 BTC have been added to Bitcoin’s exchange balance over the last 24 hours. Market enthusiasts were puzzled by this abrupt change, which sparked concern about potential increased price volatility. Glassnode, a well-known blockchain analytics business, confirmed this development. A three-month high of $9.4 million was hit by BTC’s exchange netflow on July 28.
Could There Be Imminent Bitcoin Price Volatility?
Investors are frightened by the sudden increase in Bitcoin’s on-exchange reserves. In fact, the main worry is the possibility of a decline in Bitcoin’s price, particularly in light of its recent plunge to $29,000. A rise in availability on exchanges frequently portends a rise in BTC holders’ propensity to sell their holdings, which could have an impact on the market price of the cryptocurrency. Using data from Santiment, Ali Martinez, the global head of news at BeInCrypto, advised investors to prepare for potential surges in Bitcoin price volatility. Given the current trend toward smaller exchange balances, it’s interesting that this increase in BTC’s presence on exchanges defies logic. The rise in popularity of self-custody options was cited as the cause of the development. The low point since November 2018 was reached just two days earlier, on July 26, when Sentiment registered 1.17 million Bitcoin on exchanges.
Long-Term Holders Maintain Their Position
Data from IntoTheBlock shows that long-term holders have regularly increased their BTC positions, despite Bitcoin’s recent recovery to $30,000 in value. As opposed to what was anticipated, this price increase failed to entice short-term holders, who typically profit from rising asset values. This dynamic contrasts starkly with the situation in 2019, when Bitcoin’s price dropped to $11,000 and a rise of short-term holders resulted. Although long-term holders’ steady accumulation shows their confidence in Bitcoin, its value may not respond favorably. According to past IntoTheBlock statistics, Bitcoin prices increase when short-term investors are accumulating.
BTC Has Trouble Retaining $30k Level
After hitting an average year-to-date high of $31,500, the price trajectory of BTC has essentially remained unchanged. According to BeInCrypto’s research, the price of BTC fell 1.8% to a monthly low of $29,045. At the point of writing, the price of one bitcoin was just over $29,296.