The rally to $50,000 was a pleasant surprise to all market participants after the Bitcoin price fell 55%. But as provided by Glassnode, the current bull run is very different from the one seen in January-May. And, indeed, the bull run is now coming to a halt as BTC trades in the $49,336 zone.
BTC/USD 4-hour chart | Source: TradingView
Does $740 million in Bitcoin have been transferred to the Huobi exchange affect Bitcoin price?
Both futures and options are being considered, as derivatives and high open interest on those financial instruments give us signs of the nature of the current market. For example, the previous bull run was followed by a large volume of leveraged deals on the market. This means that the price moves mainly were fueled by high leverage open positions on the market.
The proportion of old $BTC spent on-chain increased last week, as some investors de-risk and take profits. So far, the market has absorbed these realized profits, despite an overall net inflow of coins to exchanges.
Source: Glassnode
According to Santiment, the most significant amount of Bitcoin going to and from centralized exchanges was seen since Black Thursday (March 12, 2020) – 17 months ago.
Approximately 843.200 BTC were sent to crypto exchanges (the equivalent of $42,025,568,000). A total of 825,000 BTC were withdrawn (most likely sent to cold wallets), totaling $41,060,415,000.
Source: Santiment
The current bull run does not have the same volumes of open derivatives positions on the market, which means it is fundamentally more stable. At the same time, it is less volatile, which may not be a positive sign for speculative traders. But we still may see the increase of futures and options interest as Bitcoin attracts more private investors considering going long in this range. BTC that are being sold will find new long-term holders since the current market sentiment remains bullish.
In another development, back to the story of whales discharging. $740 million BTC has been transferred to the Huobi exchange. On August 23, 15,000 BTC was transferred to the exchange. It is known that this is not an internal transaction between the exchange’s wallets. The address belongs to some individual or organization.
Large exchange inflows usually indicate that private investors are looking forward to selling their holdings. However, there is currently no information on whether this 15,000 BTC has been sold. But, likely, this could also be what affects the Bitcoin price.
Plus, there’s good news that according to the Blockchain Centre, during the first half of 2021, a total of 488,206 new BTC addresses on average were created daily. Cumulatively, during the first six months of the year, a total of 88,365,209 new addresses were generated.
Bitcoin new addresses for H1 2021 | Source: BlockchainCentre.io
January recorded the highest number of new addresses at 551,332, while June registered the least number at 370,269. Notably, the change in Bitcoin’s new addresses reflects the asset’s price movement during the period under review. Although Bitcoin’s new addresses underwent a downward trajectory during the first half of 2021, activity on the network is likely to rebound alongside the number of unique addresses as the asset’s price continues to recover.
Opines on the current advantages of BTC versus gold and others
The best-known author of Rich Dad Poor Dad, Robert Kiyosaki, praised Bitcoin on Twitter. He said that BTC offers “the greatest upside” compared to other assets allowing for a store of value and helping to protect funds and serve as an inflation hedge.
Bitcoin is booming. Gold is stagnant. Silver is 50% below all time highs. Dollar is dropping. Silver is the best, lowest risk high potential investment. Bitcoin has the greatest upside. With dollar dropping Bitcoin and silver are the best investments.
— therealkiyosaki (@theRealKiyosaki) August 23, 2021
As you can see, he said that Bitcoin is blossoming, gold is stagnating, the dollar is declining, and silver is 50% under its all-time highs. Earlier, Kiyosaki tweeted that he was expecting “the biggest crash in world history is coming.” He is waiting for Bitcoin to drop to $24,000 to buy the drop and increase his hedge against it.
Read more:
- Bitcoin Price Stalled After Approaching The $50,000 Resistance, Will Likely Consolidate This Week
- This Is Why Bitcoin Price Managed To Recapture $50,000 First Time Since May, Almost 90% Of Holders Are Now Profitable