- The supply of BTC on the exchanges decreased, as did the total number of holders
- BTC fell by over 2% in the last 24 hours and the indicators were bearish
As the global economy slowly begins to shrink, all eyes are on alternative investments and financial sources, such as the crypto market Bitcoin [BTC].
Will Bitcoin or the larger crypto market be negatively affected as the US dollar begins to suffer? Or will the decline in the US dollar help the crypto market, especially BTC, thrive in the coming days?
Read Bitcoins [BTC] Price prediction 2023-24
Is confidence in Bitcoin increasing?
Seth, a popular influencer on The unsustainable US fiscal policy created a record debt of 33 trillion.
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Ray Dalio, founder of hedge fund Bridgewater Associates, warns of a US debt crisis. The US’s unsustainable fiscal policy has created a record $33 trillion in debt!
I’ve talked about the debt trap the US is in. The more debt they have, they… pic.twitter.com/cxPKHfEehf
— Seth (@seth_fin) September 30, 2023
He said he would rather hold gold or BTC than bonds. He also admitted to owning a small amount of BTC, but preferred gold. Although Dalio had more confidence in gold than BTC, market sentiment might differ. Buying pressure around the king coin has increased in the past month. This was evident from Santiment’s data.
According to the graph, BTCThe supply on the exchanges fell sharply, while the supply outside the exchanges increased. Whale activity around the coin was also high, meaning the major players were actively trading the coin. However, it was surprising to see that despite an increase in buying pressure, the total number of Bitcoin holders fell in recent weeks.
Source: Santiment
Not just investors, but Glassnode’s data showed that miners were also buying BTC, or rather, holding their claims. This was evident in the recent increase in Bitcoin miner balances.
Source: Glassnode
Bitcoin is witnessing a price correction
The crypto market recently witnessed a bull rally, allowing most cryptocurrencies, including BTC, to post gains. In fact, BTC eventually managed to keep its price above the $27,000 mark.
However, the uptrend did not last long as the coin underwent a price correction. According to CoinMarketCap, BTC is down more than 2% in the last 24 hours. At the time of writing, it was trading at $27,601.75 with a market cap of over $538 billion.
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Take a look at BTC‘s daily chart revealed that the possibility of a continued downtrend was high. The Money Flow Index (MFI) and the Chaikin Money Flow (CMF) both recorded a decline, increasing the likelihood of a price move south.
Nevertheless, the Moving Average Convergence Divergence (MACD) remained in favor of the buyers as it showed a bullish edge in the market.
Source: TradingView