[ad_1]
Bitcoin (BTC) exchanges lost 100,000 BTC during the weekend’s price plunge, the data shows – and that’s a bullish sign.
Data from on-chain monitoring asset CryptoQuant on August 5th which tracks stock market balances shows a drastic drop that occurred right after BTC / USD lost $ 1,200 in minutes.
BTC’s foreign exchange reserves hit major lows
Prior to the turbulent weekend trading, Bitcoin balances on exchanges amounted to around 2.49 million BTC ($ 29.2 billion). Subsequently, the ledger fell to 2.39 million BTC ($ 28 billion), the lowest ever recorded by CryptoQuant.
According to popular analyst Cole Garner, the change is a further indication that the general mood among investors is extremely optimistic.
“The amount of #Bitcoin held in exchanges has just fallen off a precipice,” he tweeted Thursday.
“It happened two days ago: the whales bought the sale. $ BTC out of trade is * bullish * “
As Cointelegraph reported, the decreasing number of coins held in exchanges suggests that investors intend to hold BTC, not sell or trade it on short notice. Garner agrees.
“The only reason to take them off the trade is because you plan on not selling them anytime soon,” he added.
2-week chart of Bitcoin trading reserves. Source: CryptoQuant
Binance may need fewer hot wallets
The whales – those who hold large amounts of Bitcoin – appeared to have anticipated the withdrawal much earlier, as the coins had returned to trading a week earlier.
Commenting on the trend, CryptoQuant offered an alternative but no less bullish explanation involving the major exchange Binance.
“68101 BTC transferred from Binance to a newly created wallet, and it’s unclear whether it’s their new cold wallet or third-party custody,” the company told Garner.
“Even if it is from Binance, it could be a bullish sign as Binance has decided to reduce the portion of hot wallets responsible for user withdrawals.”
BTC / USD was heading towards $ 11,800 at press time, as the remnants of the incident dissipated and $ 12,000 became a target again.
Earlier this week, Cointelegraph Markets analyst Michaël van de Poppe suggested that the next correction could be the last chance to buy BTC at a discount.
[ad_2]Source link
