1:00 p.m. ▪
4
min reading ▪ by
Evans S.
In a reminiscence that evokes bittersweet memories, bitcoin appears to be taking a leap backwards, reaching trading levels we haven’t seen since 2014. But make no mistake, it’s not a bad new. If anything, the lack of bitcoins available on exchanges may well be the signal of growing maturity and market stabilization that insiders have been eagerly awaiting.
The great trade exodus
The spectacular drop in Bitcoin deposits on exchanges, with daily levels as low as 8,400 BTC observed on April 20, 2024, is of concern.
Contrary to appearances, this is not a panic but proof of investors’ prudence. Is this the sign of a new era for bitcoin? It seems that the big players, far from preparing for a liquidation, are betting on a long-term springboard.
Data from CryptoQuant reveals that, despite past turbulence, institutional investors are showing sustained interest. This renewed confidence is reflected in strategic investments and increased reserves.
Low flows to exchanges could therefore be interpreted as a sign of maturity and a transition to a more stable and predictable phase of the Bitcoin market.
Retention of bitcoin whales: between strategy and speculation
Analyzes show that the big Bitcoin whales are not inclined to sell their reserves currently.
This retention could mean that larger bitcoin holders anticipate more attractive gains in the future.
These major players seem to play a different role, less reactive and more thoughtful, which could contribute to a less volatile market.
The arrival of new financial products, such as bitcoin-based ETFs, could also play a role in this market dynamic.
These instruments enable broader and more regulated exposure to bitcoin, thereby attracting a more diverse and institutional audience, and potentially contributing to a reduction in volatility.
Given these observations, one might wonder if bitcoin is on the verge of becoming a more stable asset class. The absence of coins on exchanges is not a red flag, but rather a mark of confidence, indicating that the market may be stabilizing.
While bitcoin is falling back below thresholds that we have not seen in almost ten years, investor enthusiasm is not waning. This could be the start of a chapter where bitcoin, far from the roller coaster of the first years, is part of a more measured and considered growth dynamic.
Whales, institutions and small investors all seem to be playing their part in this new era of cryptocurrency. Ironically, by returning to square one, bitcoin may well have crossed a threshold towards long-awaited maturity. In addition, discover the secret wallet of the American government.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has continued to research the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
