According to Ki Young-ju, CEO of CryptoQuant, “Bitcoin whales are sending BTCs to exchanges”
Bitcoin is back on the move today. Volatility is expected, as options for 67,700 Bitcoins $ 745 million are expiring today.
Currently, the largest cryptocurrency is trading just under $ 11,400, an increase of more than 3%, with more than $ 2 billion in turnover. In the past ten days, BTC has risen by 24.5%, which has resulted in the number of $ 1 million Bitcoin addresses increasing by 38% to around 18,000.
In addition, 93% of the Bitcoin offering is profitable at a price of $ 11k.
Interestingly, BTC deposits on major exchanges continue to decline, which has been falling since March, after the digital asset “crashed” along with the other asset classes. At the moment deposits have reached the lowest levels, last seen in May 2019, which suggests that users prefer to store their BTC in private wallets. In addition, “it may lead to less sales pressure in the coming months”.
“Despite the recent rise in BTC to $ 11,000, there are currently no signs of weak hands from long-term investors,” observed Glassnode. “The change in net hodler position has remained positive since the end of March, with hodlers currently accumulating more than 50,000 BTC per month.”
However, Ki Young-ju, CEO of analytics firm CryptoQuant, said that whales have started sending Bitcoin and stablecoins to exchanges. According to him:
“Bitcoin whales are sending BTCs to exchanges. Stablecoin whales are also sending stablecoins to exchanges. This week will be a battle between the flows of stablecoins and Bitcoin. These entries indicate possible buying / selling pressures. “
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Much HODling and accumulation
Bitcoin gains are recorded amid the amount of USDT flowing into exchanges, reaching an annual high. Meanwhile, Tether continues to coin millions of USDT more that “suggest an increase in market demand and can potentially support a further appreciation of the price of Bitcoin”, says OKEx.
The exchange’s annualized month-long futures base also rose to 27.67%, its highest level since the end of February. “Values above 20% indicate that traders are paying a very high premium and using high leverage,” said OKEx.
Just this week, Bakkt recorded the peak volume twice in a row, while CME saw its “open interest” reach new highs. Regarding the slow adoption of its Bitcoin options product, the CME Group continues to “work with brokers and platforms to connect them and in operation to facilitate negotiations with clients”.
– CME Group (@CMEGroup) July 29, 2020
“Institutional interest in #bitcoin futures is growing, setting a new open interest record of 13,104 contracts.”
Another optimistic development observed in the market is the 1-year HODL wave, which has not moved on the blockchain in the last 365 days.
In addition, this 1-year HODL wave in Bitcoin has reached a new historical record of 63%, an increase of 1% since the beginning of July.
The fact that an increasing number of Bitcoin investors are doing HODLing without pressure from any seller, in the form of deposits for exchanges, speaks volumes for the world’s leading digital currency.
At this point, if Bitcoin closes above $ 14,300 on the 12 monthly charts, that would be one of the most optimistic developments in this new cycle, said the analyst at Rekt Capital.
Source: BTC EG