Glassnode Investors remove BTC
from trading before halving the rewards
 |
| Glassnode Investors remove BTC from trading before halving the rewards |
According to Glassnode analysts, investors are starting to build BTC in personal portfolios, expecting a reward cut in half and an expected rate hike.
The seven-day moving average of the total number of trading BTCs on April 14 fell to 2,214,365 BTC, the lowest since last June, according to Glassnode. On Tuesday, the average fell nearly 8% from its peak of 2,404,786 BTC on January 17, 2020. According to Glassnode analysts, a decrease in the number of BTC trades stored in trades could indicate that investors started to favor long-term storage strategies. This is due to the fact that investors generally remove cryptocurrency assets from exchanges in their portfolios when prices are expected to rise. Instead, they take them to exchanges and prepare for sale in anticipation of lower prices.
For example, the price of BTC dropped 33% the week before March 15. At that point, the 7-day moving average of the total number of bitcoins on the exchange rose from 2,333,279 on March 11 to 2,350,795 on March 18. However, the price increase was short-lived and the decline in BTC balances on the stock exchanges. The speeches resumed on March 19.
Users' desire to keep their assets may be due to the expectation of an increase in BTC price after Bitcoin halved. After that, the amount of BTC circulated every 10 minutes drops from 12.5 to 6.25, or on average from 1800 to 900 BTC per day. In fact, miners spend fewer coins after being cut in half. In the long term, this can lead to delivery bottlenecks and higher prices.
Immediately after Bitcoin halves next month, we expect the price to rise and attract the rest of the market, said Richard Rosenblum, head of GSR's trading department.
In addition, the global economic crisis caused by the corona virus and unprecedented fiscal incentives from central banks around the world can increase Bitcoin's appeal as a haven and hedge against inflation. However, some experts are skeptical of a possible rise in BTC prices after halving.
Halving Bitcoin in May 2020 doesn't change the price. It won't be an event, wrote Jason Williams, co-founder of Morgan Creek Digital's Digital Asset Fund, in December.
The cryptocurrency has not yet presented itself as an asset paradise, and its March price movements correlated with traditional markets. This was mainly because institutional traders viewed Bitcoin as a source of liquidity during a stock market sale. Glassnode previously reported that the number of whales has increased significantly in anticipation of halving.
The seven-day moving average of the total number of trading BTCs on April 14 fell to 2,214,365 BTC, the lowest since last June, according to Glassnode. On Tuesday, the average fell nearly 8% from its peak of 2,404,786 BTC on January 17, 2020. According to Glassnode analysts, a decrease in the number of BTC trades stored in trades could indicate that investors started to favor long-term storage strategies. This is due to the fact that investors generally remove cryptocurrency assets from exchanges in their portfolios when prices are expected to rise. Instead, they take them to exchanges and prepare for sale in anticipation of lower prices.
For example, the price of BTC dropped 33% the week before March 15. At that point, the 7-day moving average of the total number of bitcoins on the exchange rose from 2,333,279 on March 11 to 2,350,795 on March 18. However, the price increase was short-lived and the decline in BTC balances on the stock exchanges. The speeches resumed on March 19.
Users' desire to keep their assets may be due to the expectation of an increase in BTC price after Bitcoin halved. After that, the amount of BTC circulated every 10 minutes drops from 12.5 to 6.25, or on average from 1800 to 900 BTC per day. In fact, miners spend fewer coins after being cut in half. In the long term, this can lead to delivery bottlenecks and higher prices.
Immediately after Bitcoin halves next month, we expect the price to rise and attract the rest of the market, said Richard Rosenblum, head of GSR's trading department.
In addition, the global economic crisis caused by the corona virus and unprecedented fiscal incentives from central banks around the world can increase Bitcoin's appeal as a haven and hedge against inflation. However, some experts are skeptical of a possible rise in BTC prices after halving.
Halving Bitcoin in May 2020 doesn't change the price. It won't be an event, wrote Jason Williams, co-founder of Morgan Creek Digital's Digital Asset Fund, in December.
The cryptocurrency has not yet presented itself as an asset paradise, and its March price movements correlated with traditional markets. This was mainly because institutional traders viewed Bitcoin as a source of liquidity during a stock market sale. Glassnode previously reported that the number of whales has increased significantly in anticipation of halving.