Bitcoin Rises as Exchange Withdrawals Decrease: Is There More Gains for BTC? – Business News (Trending Perfect)

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  • Despite the massive price surge, Bitcoin withdrawals from exchanges have been relatively low.
  • Activity on the Bitcoin ecosystem continues to decline.

Bitcoin [BTC] It witnessed an unexpected rise in prices over the past few days, sparking hope among traders and stockholders. As optimism increased, headlines remained committed to your Bitcoin.

Withdrawals decline

A small Bitcoin withdrawal occurred yesterday, with 10,000 Bitcoins leaving the exchange's wallets. The total value of the withdrawn Bitcoin is estimated at approximately $630 million.

This strong demand for Bitcoin indicates the potential for renewed interest in the cryptocurrency market.

Analysts point out that the level of sustained demand for Bitcoin has not been this high since late 2020, representing a significant shift in investor sentiment.

Source: X

At press time, Bitcoin was trading at $67,049.74 and its price had fallen by 0.74% over the past 24 hours. Most BTC holders made profits, as BTC was just $6,000 away from its all-time high.

The speed at which BTC was traded decreased. This means that the frequency of BTC trading has decreased.

Although this could be seen as a negative sign for BTC, the drop in speed also meant that a lot of addresses were holding onto their BTC and refusing to sell.

In addition, the total number of Bitcoin holders has also increased, indicating that a large number of addresses have accumulated large amounts of Bitcoin.

Alongside the increasing number of holders, there was an opposite pattern seen in miners' holdings. AMBCrypto's analysis of Santiment data revealed that the supply held by miners has decreased significantly.

This could be beneficial for BTC in the long term. If miners fail to generate significant amounts of fees, it will become difficult for them to remain profitable.

To keep their business sustainable, they sometimes resort to selling their holdings, which ultimately adds selling pressure to Bitcoin.

The lower supply of BTC held by miners means that these sections of holders will have less influence on the price of BTC in the future.

Source: Santiment


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Activity is declining

One of the reasons why miners fail to collect fees is due to inactivity on the network. Over the past few weeks, the number of daily active addresses on the Bitcoin network has decreased.

Besides, the number of NFTs circulating on the network has also decreased. This indicates a decline in interest in the Bitcoin ecosystem.

Source: Santiment

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