Bitcoin (BTC) Price Might Be Ready for Take-Off, Exchange Data Shows

News
Fri, 03/27/2020 - 07:01
Alex Dovbnya
Bitcoin (BTC) balances of major exchanges have reached an eight-month low, which means that there is no whale dump in sight
Cover image via stock.adobe.com
Contents

According to data provided by Glassnode, Bitcoin (BTC) holders are actively withdrawing their funds from exchanges. This indicates that BTC might be in the middle of another accumulation stage before a possible rally. 

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Following the money 

Outflows from major exchanges have been increasing since March 18. As a result, their Bitcoin balances reached the lowest level in eight months. 

The situation was completely opposite on the verge of the March 12 crash that terrified the crypto industry. Four days prior to the 48 percent plunge, there was a rapid increase in inflows. For those who were watching, this was a tell-tale sign that whales were readying to dump a massive amount of coins.

image by cq.live

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Not your keys, not your Bitcoin

The exodus of coins from major exchanges could also indicate that some investors are losing faith in centralized exchanges that appeared to be stronger than ever just two months ago. According to a LongHash report, Coinbase had nearly 1 mln BTC in its cold wallets at the end of January. 

Despite the dominance of crypto exchanges, entrusting third parties with your money goes against the idea of monetary sovereignty. Hence, many Bitcoin O.G. in the likes of Proof of Keys leader Trace Mayer urge BTC holders to take control of their coins.   

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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