Almost $3 billion worth of Bitcoin moved away from exchanges, still enough selling pressure
Traders removed nearly $3 billion worth of Bitcoin from various centralized exchanges as Bitcoin price skyrocketed to $39,000 as the Fed kept the main rate in the country unchanged. At the time of writing, BTC is changing hands at $36,234.
BTC/USD 4-hour chart | Source: TradingView
$2.9B worth of BTC moved from exchanges following Bitcoin price spike to $39,000
But as some traders and investors are relieved to see Bitcoin nearing $40,000, the presence of additional financial risks in the market, and Jerome Powell’s rhetoric about inflation and monetary policy pushed the first cryptocurrency down to $36,000.
According to Powell’s suggestion, inflation in the US could aggravate the market over the next few months, which is why the regulator will act in the first half of this year. The 16th Chair of the Federal Reserve stated that the regulator expects the first rate hike in March. In general, the meeting is considered a risk to the market; therefore, it negatively affects Bitcoin, which is regarded as a risky asset.
While large outflows from exchanges are a prerogative of a bear market, large investors and institutions could use exchanges to accumulate additional cryptocurrencies while trading at a discount.
? Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $1.7B in
⬅️ $2.9B out
? Net flow: -$1.2B#Ethereum $ETH
➡️ $919.5M in
⬅️ $732.0M out
? Net flow: +$187.5M#Tether (ERC20) $USDT
➡️ $925.1M in
⬅️ $791.8M out
? Net flow: +$133.3Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) January 27, 2022
An anonymous whale bought nearly 500 BTC during the bear market. The same whale is also holding close to 125,000 BTC on his balance. Such large sums are usually kept in cold wallets for greater safety. But while nearly $3 billion in crypto has been moved from exchanges, there is still a lot of selling pressure in the market that causes Bitcoin to drop in price.
At the time of writing, the cryptocurrency has also lost around 7% of its value since its peak in the country.
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