The risk of a massive sell-off in the bitcoin market is diminishing every day as new data shows that investors are accumulating. However, analysts continue to warn about the uncertain market outlook in the short term.
to the the report Coin Telegraph, the volume of bitcoins available in digital currency exchanges has been steadily declining since mid-May. This indicates that the massive sale of other investors is over.
Data from the analytical website Santiment show that the bitcoin inventory of digital currency exchanges has reached its lowest level since the beginning of January. Centiment also tweeted on Monday that reaching the six-month low was a good sign, as it showed that investors’ risk of massive sell-off had decreased.
Bitcoin deposits with exchanges intensified in early May, eventually leading to a massive market sale in the middle of the same month. Bitcoin sales peaked on May 19, ending in a $ 1.2 trillion drop in the total value of the digital currency market.
Data on inputs and outputs of exchanges is one of the most important criteria for determining the price trend in the short and medium term. The increase in bitcoin net inflows to digital currency exchanges indicates that investors may have taken their assets out of cold wallets for the purpose of selling. For example, in May, when the price of bitcoin fell from $ 60,000 to nearly $ 30,000, digital currency exchanges’ bitcoin inflows reached their highest level since the corona epidemic in March 2020. .
While bitcoin remains in a downtrend, investors are finding more and more reasons for an uptrend. The rapid pace of bitcoin acceptance in South America, the predictable relocation of Chinese miners to other countries, and the benchmarks of market returns are reasons to be optimistic about the days ahead.
On the other hand, analysts continue to warn about the uncertain market outlook in the short term, and many prominent figures in the field have predicted a more severe market reform this year.