For the first time since January, more Bitcoin is entering the stock exchanges. Crypto market analysts explain what this means.
According to a new report from Glassnode, more Bitcoin has been flowing to crypto exchanges for the first time since January.
Using data up to July 19, Glassnode found that it entered more Bitcoins than it entered the stock markets this month.
In March, after the collapse of the coronavirus-induced market that nearly halved the price of Bitcoin, approximately 92,000 Bitcoin came out of the exchanges. This is seen as the largest amount consumed in exchanges in a single month and “The biggest and longest BTC currency balance downtrend in the history of Bitcoin,” as Glassnode reported in May.
Glassnode received a potential bullish signal for Bitcoin. “Withdrawing money from exchanges to keep them in a cold store can mean a longer-term outlook,” investors said. Analysts can now be interpreted as a bearish signal.
“Therefore, since most investors and traders use exchanges for BTC, it makes sense that Bitcoin’s net flows to exchanges start to rise again.”