Bitcoin's Second Coming: Exchanges Drying Up as Price Nears $20,000
Bitcoin is close to hitting $20,000 again, and the amount of Bitcoin on exchanges is at its lowest since 2018.
Bitcoin's price is on the rise again, with data suggesting that more and more tokens are being withdrawn from exchanges and into personal wallets. This is a positive development, as it suggests that people are confident in the future of the currency.
It is typically seen as bullish for prices when exchange outflows occur, as this generally demonstrates that market players have long-term convictions in the asset rather than simply wanting to get rid of it in the near term.
Bitcoin's supply on exchanges is dropping rapidly, indicating a possible price increase.
As the crypto-analytic platform Santiment has noted, Bitcoin's supply is rapidly moving away from exchanges. This is a positive sign, indicating that traders are content with their current holdings and are not interested in selling at the moment. This bodes well for the future of Bitcoin, as it suggests that demand for the currency is strong and that investors are confident in its long-term prospects.
It is clear that investors are confident in Bitcoin heading into the fourth quarter of the year. With less than 9% of BTC currently existing on exchanges, this indicates that investors are holding onto their Bitcoin and not selling it. This is a good sign for the future of Bitcoin, as it shows that investors believe that the value of Bitcoin will continue to increase.
This is the fourth largest daily BTC outflow that has been registered for the crypto asset this year, according to Santiment's data. This latest steep fall in Bitcoin balances occurred between September 29 and October 1. While this is certainly not good news for Bitcoin holders, it's important to keep this in perspective. After all, Bitcoin has still seen plenty of success this year, despite this and other challenges.
Relief Rally: Stocks Soar After Fed's Emergency Rate Cut
Bitcoin surged past $20,000 on Wednesday, powered by a rally that has been driven by intense foreign pressure on the US to stop hiking interest rates. The digital currency has seen a surge in popularity in recent months, as investors seek refuge from traditional markets.
The United Nations Conference on Trade and Development (UNCTAD) has warned of the risk of a monetary policy-induced global recession and the serious implications it would have for developing countries. In a statement alongside its annual report, the agency said that a new strategy is needed to address the risks associated with current monetary policy. UNCTAD said that developing countries are particularly vulnerable to a global recession, as they would have less capacity to respond to the shock. The agency called on policy makers to consider the risks to the global economy when making decisions on monetary policy.
“Excessive monetary tightening could usher in a period of stagnation and economic instability. Any belief that they (central banks) will be able to bring down prices by relying on higher interest rates without generating a recession is, the report suggests, an imprudent gamble.”
It is clear that the UN agency's assessment of the situation is correct - higher interest rates will have a severe impact on emerging economies. However, it is encouraging to see that the market is responding positively to the news, with several top altcoins posting impressive gains. This shows that there is still confidence in the cryptocurrency market despite the challenges it faces.
As Bitcoin continues to surge in price, it appears that the BTC supply on exchanges is at its lowest since November 2018. This is good news for Bitcoin investors, as it indicates that there is strong demand for the cryptocurrency.
