Fintech
100,000 Bitcoin REMOVED from cryptocurrency exchanges! What future for BTC?
Bitcoin, the heavyweight in the cryptocurrency world, is currently hovering near its peak value of $73,000. However, it is facing obstacles in surpassing its previous record highs. A combination of factors, from Bitcoin’s recent halving to substantial withdrawals from major exchanges, is shaping market dynamics.
Here’s everything you need to know.
The impact of the Bitcoin halving
Following the Bitcoin halving on April 20th, a significant shift occurred in the cryptocurrency landscape. This event, which reduced mining rewards, significantly slowed the creation of stablecoins. At the same time, there was a decrease in the number of portfolios holding more than $10 million in stable assets. These changes are impacting current market conditions, making it more difficult for Bitcoin to reach new highs.
Withdrawals from cryptocurrency exchange
Over the past month, an unprecedented amount of Bitcoin, equivalent to $6.75 billion or approximately 97,000 BTC, has been withdrawn from exchanges. This massive movement was largely driven by withdrawals from two major US-based exchanges: Kraken, which saw a withdrawal of 55,000 BTC worth $3.8 billion, and Coinbase, where 24,000 were withdrawn BTC worth $1.7 billion.
Such large-scale withdrawals often signal a shift in investor sentiment towards holding rather than trading, impacting trading liquidity.
Insights from short-term holders
Insights from Bitcoin’s short-term holders reveal a story of resilience amid uncertainty. With a realized profit margin of 3.35%, these holders indicate low risk of significant sell-offs, suggesting that current price levels are still attractive to short-term investors.
Bitcoin price movements in 2024
Bitcoin’s journey into 2024 has been a roller coaster ride of ups and downs. Starting the year at around $44,196, Bitcoin rose to over $73,000 on March 13, before falling to around $64,938 on April 20. By May 1, it had fallen further to nearly $58,244.
However, since then, Bitcoin has continued to rise steadily. On May 20, it approached its peak again, settling just below $71,500. Another attempt on June 5th saw Bitcoin cross the $71,000 mark, indicating a strong recovery trend.
Navigating volatility
Despite significant volatility, Bitcoin remains resilient. Despite challenges such as halving events and major market movements, cryptocurrency continues to persevere. As Bitcoin continues its journey through these turbulent times, investors remain focused on its potential to reach new all-time highs.
Will Bitcoin break past previous highs or will these market forces hold it back? Share your thoughts.