- Bitcoin investors moved their holdings from CEXs like Binance to self-custody
- Open interest increased, while other on-chain metrics remained optimistic
While altcoins took a huge hit last week as their prices fell by double digits, Bitcoins [BTC] price action was relatively stable.
According to CoinMarketCap, the price of BTC fell more than 3% in the past week. At the time of writing, Bitcoin was trade below the $26,000 mark at $25,978.69, with a market cap of over $504 billion.
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Balances on stock exchanges plummet
Santiment’s latest tweet revealed an interesting development for Bitcoin. According to the tweet, the supply of BTC on exchanges reached its lowest level since February 2018, suggesting that investors were accumulating BTC. While an increase in accumulation is generally bullish, the scenario was a bit different this time.
📉 #BitcoinStock market supply is now down to its lowest level since February 2018. Traders keep moving $BTC to self-preservation during the uncertainty surrounding it #Binance & #Coinbase. As long as this one #SEC lawsuits threaten, this trend should continue. https://t.co/CBoxJ8oA07 pic.twitter.com/c7MQyMswgp
— Santiment (@santimentfeed) June 14, 2023
A major reason for this development could be declining confidence in CEXs such as Binance and Coinbase. This happened because both major CEXs had separate installments with the US Securities and Exchange Commission (SEC).
Caueconomy, an author and analyst at CryptoQuant, recently posted a analysis attention to the aftermath of a drop in supply on exchanges. According to the analysis, the move from CEX to self-preservation helps to increase adoption of self-preservation.
However, it also reduces trading volume on these platforms, which in turn lowers the overall liquidity of the order books.
The case of BTC’s Open Interest
Coinglass data suggested that BTC’s price chart could remain red for the next few days. The possibility was revealed by BTC‘s outstanding interest, which registered an increase on June 6 and then fell on June 7. However, from June 14, it moved in a sideways direction. Rising outstanding interest means that new or additional money is entering the market.
Source: Coinglass
However, the statistics were bullish
While the open interest of BTC did not paint a clear picture, it is statistics told a different story. Bitcoin’s exchange rate reserve declined, suggesting that the coin was not under selling pressure. The binary CDD was green. The statistic revealed that the movements of long-term holders over the past seven days have been below average.
In addition, BTC’s funding rate was also high, due to the demand in the futures market. However, contrary to the sentiment mentioned above, BTCThe fear and greed index had a score of 46, indicating fear among investors.
Source: Alternative
Read Bitcoins [BTC] Price prediction 2023-24
Surprisingly, according to Santiment’s chart, Bitcoin social volume plummeted sharply last week. One possible reason for this could be last week’s altcoin crash, which made altcoins a hot topic of discussion in the crypto community. BTC’s weighted sentiment indicated that investors were not very confident in it BTC while the chart remained in the negative zone.
Source: Sentiment