platforms Coinglass trading information reveals that 109,133 Bitcoins worth US$1.8 billion have been withdrawn from crypto exchange in this month. What causes the depreciation of crypto assets equivalent to IDR 27 trillion?
Reported from Teacher Watcherthe balance of those BTC assets has rapidly started to dwindle since mid-early November 2022.
“With Bitcoin trading at US$17,300 at the time of writing, the balance on the exchange is now on the verge of 2 million BTC,” said the online media, Monday (5/12/2022).
Following the massive withdrawal of the Bitcoin asset, a number of crypto exchange obtain inflow (flow of funds) in large quantities.
binance, crypto exchange largest by trading volume, recorded the most inflows. Over the last month, the supply of the exchange registered a positive change of around 95,000 BTC.
Then OKX trailed, with its balance posting an uptrend of around 33,000 BTC. Exchanges like Poloniex, Coinone, and Huobi are all in the same boat.
In contrast, from Coinbase Pro, Bitfinex, Gemini, Kraken, Bitmex, Bybit, and Gate, BTC left crypto exchange that.
With total outflows exceeding inflows, the net number remains negative indicating that users are adding the largest crypto assets to their portfolios.
The price of Bitcoin has fallen quite a bit, and investors are trying to take advantage of the current trend.
“The fact, as outlined in an earlier article today, the number of investors holding more than 1 BTC hit an all-time high of 958,909, confirms the narrative,” explained Teacher Watcher.
The media also noted that the number of addresses holding more than 0.1 coins also hit an all-time high of 4,109,602 on Monday.
The movement of large amounts of BTC assets always manages to steal the attention of investors and observers, especially if the Bitcoin comes from an old wallet, around 5 to 9 years ago, and only dormant.
As reported by BitcoinNewsregarding 348 BTC transferred by the owner on November 29, 2022, which was purchased when the price was still US$1,000 per coin.
The findings from Btcparser show that, 299 out of 348 BTC there is a possibility that the owner is the same person.
Owners of large amounts of Bitcoin assets inevitably come under the scrutiny of observers, because they can move the crypto market if they sell most of their holdings.
Understandably, because investors who buy large amounts of Bitcoin at low prices, even if it was still US$100 per BTC, could make a fortune in 2022.
BTC Withdrawal from Exchanges, Due to Industrial Shocks Cryptocurrencies
Industry cryptocurrencies including Bitcoin was indeed badly shaken, caused by dollar pressure from early 2022, until the shocking collapse of the FTX crypto exchange in mid-November 2022.
The impact of the falling price of Terra LUNA was followed by the weakening financial situation of several other crypto companies, such as Gemini and Genesis.
Since the FTX scandal started, concerns started to form among investors, with some of them deciding to liquidate their crypto holdings.
The crisis of trust has also overshadowed the crypto market, so several attempts have been made, such as disclosing BTC reserve funds owned by exchanges to the public through a mechanism Proof-of-Reserve.
Because of these factors, the multinational bank Standard Chartered argues the price of Bitcoin (BTC) could fall to US $ 5 thousand or equivalent to IDR 77 million in 2023.
“A further decline in the Bitcoin price of around 70 percent to $5k over the next year is among the surprise scenarios that the market may still be very bearish,” said Eric Robertsen, Head of Global Research at Standard Chartered. BloombergTuesday (5/12/2022).
Eric highlighted the FTX scandal case which also undermined customer trust in the crypto market. And, the sap also infects other crypto companies.
However, not all parties are pessimistic about the prospects for the price of Bitcoin. One of them is from American venture capital investor, Tim Draper who predicting the price of BTC will reach US $ 250 thousand in the middle of next year.
Previously, the Draper Venture Network founder predicted that Bitcoin would reach US$250,000 by the end of 2022, but in early November, at the Web Summit technology conference in Lisbon.
But later corrected him, that it would take until June 2023 for that BTC price prediction to come true.
“I have extended my prediction by six months. US$250k per BTC is my goal,” Draper told CNBCMonday (5/12/2022).
To make this ‘hyperbolic’ prediction come true, the BTC price needs to soar up to 1400 percent from the current price of around US$17 thousand.
Even though since early 2022, as the dollar strengthened as a result of rising interest rates, BTC has fallen by more than 60 percent. [ab]