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Bitcoin "Black Thursday" Repeat Unlikely as Exchanges Have Less BTC


20 Aug 2020   #Bitcoin

On-chain data suggests Bitcoin price will not see a Black Thursday repeat as the amount of BTC held at exchanges has dropped to a 2020 low. As Bitcoin (BTC) price pulled back below $12,000, some investors began to worry that another crypto market crash like one that occurred on March 11 would occur. 

However, data from CryptoQuant, an on-chain analysis firm, suggests otherwise, as Bitcoin exchange reserves hit a 2020 low. CryptoQuant CEO Ki Young Ju said:

“People keep worrying about the great sell-off like March, but exchanges don't have as many idle Bitcoins (waiting to be sold) as that day.”

The Bitcoin exchange reserve metric shows how much BTC is being held at exchanges. When the figure reaches a low it suggests that investors have withdrawn their holdings from the exchange into a more secure and permanent storage. 

Data from Chainalysis, also shows that the amount of BTC held for to 52 weeks is on the rise. Furthermore, Glassnode, an on-chain analytics provider, recently observed similar behavior and said that “the decline of Bitcoin exchange balances signals reduced selling pressure.” 

At the time of writing, 2.6 million BTC are being held at exchanges, which is lower than the amount held before the March sell-off when the figure sat at 2.9 million BTC.

Miners are not selling


Data from CryptoQuant also revealed that miners are choosing to hold on to their current BTC supply. This suggests that miners expect higher prices and is a good indication of positive sentiment as miners constitute a significant portion of the Bitcoin selling pressure, they hold some influence over the Bitcoin price.

The Bitcoin hash rate has also been increasing, another bullish sign as more people see the BTC price as being reliable above their price of production, a factor that gives the hash rate and price a strong correlation. 

While the number of BTC held by exchanges is at a 2020 low, data from CryptoQuant also shows that this figure may change soon as Bitcoin inflows to exchanges are on the rise. 

According to Ki Young Ju increasing amounts of BTC being sent to exchanges is typically a bearish sign. 

“BTC Inflows (netflows) into spot exchanges could indicate a potential sell pressure, stablecoin inflows indicate a potential buy pressure.”

While increased exchange inflows for Bitcoin are typically bad news, USDT transfers are also on the rise, according to data from Glassnode, having reached their 2020 high on Aug. 17.

Source


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 83.2% 25 $47 514.86 0.03% 4.04% $894 161 245 483 $28 719 970 368
2 Ethereum (ETH) ETH Ethereum predictions 70.8% 52 $3 425.09 -4.04% 3.39% $402 666 663 593 $18 286 623 700
3 Cardano (ADA) ADA Cardano predictions 66.8% 64 $2.37 -2.40% -1.36% $75 781 714 075 $2 487 829 825
4 Binance Coin (BNB) BNB Binance Coin predictions 62.8% 71 $411.72 -2.88% 1.09% $69 224 713 306 $1 527 065 026
5 Tether (USDT) USDT Tether predictions 90.8% 1 $1.000505 0% 0.04% $68 288 419 652 $68 611 287 328
6 XRP (XRP) XRP XRP predictions 73.6% 54 $1.076541 -1.68% 0.07% $50 190 746 420 $3 097 982 561
7 Solana (SOL) SOL Solana predictions 60.8% 90 $144.23 -5.53% -20.65% $42 811 715 184 $4 598 352 380
8 Polkadot (DOT) DOT Polkadot predictions 63.2% 81 $33.93 -2.81% 14.82% $33 510 932 866 $2 377 195 223
9 Dogecoin (DOGE) DOGE Dogecoin predictions 68% 67 $0.242934 1.34% 0.11% $31 903 126 082 $2 283 954 463
10 USD Coin (USDC) USDC USD Coin predictions 95.2% 1 $1.000592 0.03% 0.04% $29 326 641 867 $2 830 929 347
11 UniSwap (UNI) UNI UniSwap predictions 72.8% 57 $24.71 -5.84% 8.18% $15 112 382 412 $538 836 442
12 Avalanche (AVAX) AVAX Avalanche predictions 66.8% 69 $65.07 -0.74% 35.80% $14 334 471 719 $1 976 567 012
13 Terra (LUNA) LUNA Terra predictions 67.6% 67 $35.13 -6.95% -12.79% $14 112 450 042 $1 162 902 372
14 Chainlink (LINK) LINK Chainlink predictions 74% 57 $28.33 -5.40% 5.96% $12 847 482 644 $1 503 217 743
15 Binance USD (BUSD) BUSD Binance USD predictions 94% 1 $1.000515 0.03% 0.04% $12 832 920 510 $5 737 193 114

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