Mo.bi - Crypto Currency Tracker logo Mo.bi - Crypto Currency Tracker logo
NewsBTC 2021-09-09 19:00:49

Bitcoin On-Chain Data Reveals Why This Selloff Is Different From May’s Crash

Bitcoin on-chain data shows the exchange reserve indicator looks different for the current selloff when compared to the May crash. Bitcoin Spot Exchange Reserve Continues To Decline Despite The Huge Dip As pointed out by a CryptoQuant post, the BTC reserve on spot exchanges has actually declined amidst the current price dip. The Bitcoin all exchanges reserve is an indicator that shows the amount of coins present in wallets of all the centralized spot exchanges. When the reserve’s value moves up, it means more investors are sending their BTC to exchanges for withdrawing to fiat or altcoin purchasing. Similarly, a downtrend in the metric implies investors are withdrawing a net amount of Bitcoin from exchange wallets to personal ones for hodling them, or selling through OTC deals. Here is a chart showing how the value of the indicator has changed in the past year: The Bitcoin exchange reserve seems to be going down | Source: CryptoQuant Now, on examining the above graph, some interesting features can be seen. In the lead-up to the 2021 bull run, the exchange reserve was coming down from a very high value. This makes sense as a downtrend like that one means investors were accumulating more coins, which can help drive the price up. Then, around when Bitcoin hit its all-time-high (ATH), the metric started climbing back up quick, indicating a selloff, and thus the price crashed in response. Related Reading | Panama To...

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.