Uptrend: Digital currency exchanges’ bitcoin holdings near near all-time low
New data show that digital currency exchanges’ bitcoin inventories are back near their all-time low. However, experts believe that these statistics may vary depending on how different analytics platforms work.
To Report Kevin Telegraph, in-line data from CryptoQuant analytics website shows that by 2022, consumers’ appetites have increased; Because the bitcoin inventory of exchange offices has reached its lowest historical level again.
At the end of December (Azar), the bitcoin inventory of the exchanges reached 2.303 million bitcoins and shortly after it increased to 2.334 million units.
Even though the holidays are over and institutions are back on the market, the downward trend in bitcoin prices continues. In addition, as expected, with the start of the first quarter of 2022, large buyers have begun to work.
Digital currency exchange inventory data became highly controversial this week. The problem is that different statistical sources use different numbers of exchanges and wallets in their surveys, and this makes their statistical results very different.
For example, the cryptocurrency platforms, Golsnood, and CoinMetrics, examine data related to 21, 18, and 5 exchanges, respectively. On the other hand, the website Cryptorank (Cryptorank) announced on Christmas Eve that the inventory of the exchanges is only 1.3 million bitcoins.
Depending on the platform you use, the inventory trend of exchanges can also be different. For example, in the last few months the inventory of some exchange offices has decreased and the inventory of others has increased.
An analyst with the username “therationalroot” on Twitter said:
If we do not consider a series of exchanges when checking the bitcoin inventory, the obtained results will be incorrect. Due to the ban on cash transactions in China, the mere abandonment of the Huobi exchange will have a huge impact on the results.
The analyst’s purpose in naming Hubei Exchange was to point to the ban on digital currency trading in China, prompting Hubei to announce that it would deactivate the accounts of all Chinese users by the end of 2021.
Market control is in the hands of large investors
David Paul Puell, creator of the Puell Multiple Indicator, explained in an interview with Cryptocurrency last week what he thinks about the future of digital currency market participants.
The slowdown in the bitcoin market in 2021, compared to years like 2019, seems to have pushed micro-investors away from the opportunity or the fear of losing the FOMO they bring with them.
He said:
I think this is good in the long run. Institutional investors will own more of the market, and in particular the control of price movements from month to month will be given to these investors. New entrants will sell part of their assets and the role of micro-investors will be greatly diminished.