Bitcoin’s price movement is far from what investors want as BTC is $23,000 away from reaching the all-time high of $69,000.
As of December 12, data from the number of Bitcoin addresses sending BTC to exchanges hit a 13-month low of 4,197.9 for the seven-day moving average.
For a more general picture, look at the net transfer volume exchange chart (based on 7d EMA); it can be seen that the market is now in accumulation, with 3,000 to 5,000 BTC being withdrawn from exchanges daily.
Bitcoin net transfer volume from and to exchanges. Source: Glassnode
Therefore, the diversity of sending addresses suggests that traders tend to hold BTC than an expectation about a new growth cycle. Over the past weeks, BTC has exhibited excess volatility, dropping below the $60,000 support and quickly hitting bottom at $42,000.
At this writing, Bitcoin (BTC) continues to fall despite the good news, dropping $5,000 within 24 hours and trading around $46,694.
However, the biggest question is why Bitcoin is still unable to recover when there are not too many BTC on the exchange and swamp by the Long. The coin is withdrawn constantly to add for long-term holdings. Although 90% of the BTC supply has been mined, the amount of Bitcoin exchange reserves even “bottomed out”.
According to the analysis of the Coin68 team, the first reason why the market is struggling is the impact of Omicron, the super-mutant COVID, which pushed Bitcoin below $55,000 for the first time in late November. However, on December 13, the UK recorded its first death from Omicron. Perhaps most retail investors were panicked by this news and created a panic selling.
Next, the barrier from the Fed. There have been many warnings from experts that the Fed Chairman could be undesirable for the marketplace in the next term. Especially, the decision to speed up the taper earlier than the originally planned conclusion in mid-2022, may be made at the next FED’s meeting on December 15 to improve the situation when the US inflation nearly reaches the 40-year high, and the complicated pandemic “freeze” the US economy during the past year.
In general, from the above two facts, selling pressure is strongly reinforced, mostly from retail investors, who are easily influenced by certain skepticism and worries from macro factors. Otherwise, the moves of major financial institutions simply revolve around the story of BTC accumulation every time there is a chance for a price drop.
On December 9, MicroStrategy purchased an additional $82.4 million Bitcoin, raising the company’s current ownership to 122,477 BTC, worth an estimated $5.9 billion. El Salvador also missed catching the bottom of 150 BTC during the intense sell-off at the end of last week. The El Salvador Treasury holds 1,370 BTC, with an average of $49,405.
Source: coin68
