Bitcoin experienced a drop to 58, 000 dollars in the recent day. On-chain data suggests that this may be the case.
The recent withdrawal of a large amount of Tether has been seen by exchanges
Market intelligence data shows that the number of people using market intelligence platforms has increased. IntoTheBlockRecently, the number of centralized exchanges has increased. Tether (USDT) A massive outflow of $1 billion.
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Investors typically keep coins at exchanges if they plan to buy and sell them soon. By withdrawing tokens, investors may be indicating that they wish to retain them over the long run.
This is why exchange outflows for volatile assets, such as Bitcoin, can be considered a bullish signal. The current discussion is about a stablecoin. Therefore, its implications for the market are different.
Investors store capital as fiat tokens, such as Tether. This allows them to avoid the volatility of coins such BTC. They do plan on returning to the opposite market at some point and will use exchanges.
Stablecoin holders who buy assets such as Bitcoin with their stablecoins naturally boost their price. Stablecoin exchange inflows can therefore be seen as a sign of bullishness for the stablecoin sector.
The market can suffer if investors withdraw USDT or other currencies into their own custody. This is because it indicates that they don’t think the volatility will be traded in the near term.
This could be the reason why Bitcoin’s price is falling. These USDT exchanges exiting could have been fresh BTC sellings as investors often move to self-custody once they swap assets.
As IntoTheBlock pointed out on the chart, both the recent large USDT outflows and the BTC decline were also attributed to the USDT outflows.
The cryptocurrency derivatives markets as a group have seen an increase in volume. liquidations Due to the volatile behavior of Bitcoin and other currencies over the last day.
The table below is from CoinGlass The liquidation of stocks during the most recent market volatility is summarized.
The chart above shows that around $146,000,000 in crypto liquidations occurred during the last day. Of this, $120,000,000 came from long-term contracts, which represents more than 80%.
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Interestingly, Ethereum (ETH) ETH, not Bitcoin as is usual in the past, has been the major contributor to this recent derivatives flush. ETH only has $6 million in more liquidations than BTC.
BTC price
Bitcoin’s price is currently around $58,800. That represents a drop of 4% in the last 24 hour.
Chart from TradingView.com. Image from Dall E, IntoTheBlock.com.
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Source: www.newsbtc.com