The total volume of Bitcoin transactions reached 10 BTC per day. The majority of transactions are made by institutional investors. However, this increased trading activity may not bode well for long-term investors and traders, according to analyst Arman Shirinyan. We take a look at the reasons…
What on-chain analysis says for Bitcoin
Low exchange funds and transaction flow are one of the key indicators of a stable cryptocurrency market. Significant activity observed often comes with large volumes entering their exchanges. However, when various on-chain indicators are analyzed, both foreign exchange reserves and inflows either move downwards or do not change at all:
Institutional investors trade BTC over the counter
Now, according to on-chain analysis, it appears that large BTC transactions are handled via cross-wallet or over-the-counter (OTC) agreements, rather than centralized or decentralized exchanges. Most institutional investors trading with large funds prefer this method for transactions that cannot be done immediately on exchanges.
On the other hand, the 15% BTC drop that took place on September 7 is the biggest indicator of increased transaction activity. During this period, a large change was observed in the number of BTC held in whale wallets. Bitcoin millionaires sold 70,000 BTC in just three days. However, after the drop, they quickly accumulated 60,000 BTC, with the price decreasing by about 10%.
Next to whales, although the effectiveness of some small “young” wallets is increasing rapidly according to analysis, former Bitcoin holders are not very willing to sell and are thinking long-term. Apart from that, old wallets that have been holding Bitcoin for over a year had one of the lowest spending periods according to historical data. With all this, Bitcoin (BTC) was trading just under $48,000 without any temporary movement prior to the growing network activity.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.