New on-chain data shows that a lot of Bitcoin is moving to centralized platforms. This has caused people to worry about how it might affect the price of the cryptocurrency.
Ali Martinez, a well-known crypto analyst, recently wrote on the X platform that Bitcoin buyers are moving more and more of their assets to centralized exchanges. CryptoQuant’s Exchange Reserve metric tracks the overall amount of a certain cryptocurrency that is held on all exchanges and shows this trend.
When more deposits than withdrawals are made into organized exchanges, the Exchange Reserve metric goes up. This means that there is more pressure to sell. On the other hand, a drop means that buyers are moving their assets out of the exchanges.
BTC Exchange Reserves Surge
CryptoQuant data shows that more than 14,000 BTC, which is worth about $851.2 million, have been sent to crypto platforms in the last four days. The measure of exchange reserves is now at its highest level in almost a month thanks to this rise.
Since investors often use centralized platforms to sell assets, a rise in the exchange reserve usually means that there is a lot of selling pressure. Consequently, moving substantial amounts of BTC to these sites could make the price fall even more.
Also, the large amounts of funds coming into markets could cause price volatility, which means that big price changes are more likely to happen soon.Even with these changes, the price of Bitcoin has stayed pretty steady over the past day. At the moment, Bitcoin is worth about $60,700. This is a small 0.3% rise in the last 24 hours.
Not all signs, though, point to a bad future for Bitcoin. Santiment, an on-chain analytics platform, has given us a better view. Santiment says that btc recent price drops and short-lived recovery have been short-lived, but a price rebound is predicted. This study is based on two things: the low relative strength index (RSI) and the recent negative mood from the crowd. According to Santiment’s post, these things could mean that Bitcoin’s price is about to rise again.
But note the continued negative sentiment pouring in from the crowd, indicating their patience is wearing thin. This, along with a low RSI of just 36, are strong indications a bounce is close.
