Today, 10,000 Bitcoins with a total value exceeding $292 million have flowed into exchanges. On-chain analyst Ali Martinez warns that transfers can lead to price fluctuations.
Could 10,000 Bitcoins cause price volatility?
In the last 24 hours, Bitcoin’s currency balance has witnessed a notable increase of 10,000 BTC. This sudden change leads to speculation that price volatility may increase. He reported on Glassnode that on July 28, BTC’s stock market net flow reached a three-month high of $9.4 million.
Based on Santiment’s data, on-chain analyst Ali Martinez warns investors to be prepared for possible Bitcoin price volatility spikes. Worries are further fueled by the BTC price approaching $29,000. BTC growth on exchanges usually indicates an increased tendency among investors to sell BTC. This directly affects the market value of BTC.
#Bitcoin | Watch out for a spike in volatility!
A large number of idle $BTC has been exchanging hands over the past 24 hours, which coincides with a 10,000 #BTC increase in supply on #crypto exchanges. pic.twitter.com/k3lKmTjfYC
— Ali (@ali_charts) July 28, 2023
Interestingly, this growth in BTC availability on exchanges contradicted the recent trend towards declining currency balances. This trend has been linked to the growing popularity of personal storage solutions. Just two days ago, on July 26, Santiment registered 1.17 million BTC on exchanges. This represents the lowest level since November 2018.
Long-term investors remain loyal
According to data from IntoTheBlock, long-term investors have consistently increased their BTC positions, despite Bitcoin’s recent decline from $30,000. Contrary to expectations, short-term investors did not choose to sell during the last price increase.
This dynamic contrasts sharply with the 2019 scenario, where the Bitcoin price drops to $11,000, prompting short-term investors to sell. Although the steady accumulation of long-term investors shows confidence in Bitcoin, the price may not always react positively.
Historical data from IntoTheBlock shows that Bitcoin prices are rising when short-term investors are in accumulation mode.
Bitcoin price struggles to reclaim $30,000
BTC price is stuck in the 29,000 region after hitting a year high at $31,500. The data reveals that the price of BTC fell 1.8% to a weekly low of $29,045. The leading crypto is currently trading just under $29,300. Weekly BTC analyzes question the priority of $25 and $40,000.
cryptocoin.com As you follow, most analysts draw attention to the halving event that will take place in 2024. The next BTC halving will take place in April of next year. Historical data shows that price always makes ATH especially after these cycles.
