During this time of Bitcoin price volatility, it is crucial to analyze the overarching statistics. The number of BTC in exchange wallets is rising again. Part of this comes from miners, although the change is minimal.
Exchange Wallets See More BTC
Several statistics can provide insights as to why the Bitcoin price is struggling to hit $40,000 again. A market correction on this scale is normal and healthy, yet it also makes some people uneasy. It doesn’t appear things will change either, as the amount of BTC in exchange wallets is rising ever so slightly.
More specifically, there are 20,000 BTC more in exchange wallets compared to about a week ago. This may signal a stronger intent to sell. However, it may also be a sign of newcomers buying Bitcoin for the first time and not moving it to their private wallet. On their own, these statistics don’t mean much.
Even then, it is clear the ongoing decline in exchange reserves has temporarily come to an end. A double bottom is visible on the chart, although the subsequent rise is not spectacular. Dipping below that 2 million BTC in exchange wallets threshold will take a while longer.
What is remarkable is how the exchange inflow isn’t increasing all that much. Some days are more outspoken than others. The momentum is very similar to early 2020 when the price was much lower. Going by the amount of BTC in exchange wallets alone is not sufficient to grasp the full picture.
What Are The Miners Doing?
One possible “catalyst” for this ongoing BTC volatility is the Bitcoin miners. These individuals and corporations often have to sell [some of] their earnings to offset bills and other due payments. Thankfully, there is a chart to analyze these flows as well. The current situation is not as spectacular as some may think, though.
Granted, there are a few peaks in terms of miners outflow. These cycles tend to occur somewhat regularly. Even if a spike occurs, the amounts are well below the averages from September, October, and November 2020. Miners are seemingly not a significant contributing factor at this time.
If there is a slightly higher influx of BTC and not enough buyers, the current situation can occur. There may not be sufficient demand for Bitcoin to offset the somewhat higher amount recorded on exchanges at this price. A bit surprising, as so many traders have been calling for a brief dip. Now that it has arrived, demand seems to dwindle.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com