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October 3, 2022
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Bitcoin

Multi-million dollar transaction withdraws 1,000 bitcoins from the market

A multimillion-dollar bitcoin transaction took place recently, removing literally 1000 bitcoins from the market.

The Bitcoin Archive posted the news on Twitter, revealing that more than 1000 bitcoins left the exchange OKEx for a cold wallet.

In total, 59 million dollars in bitcoin are withdrawn from the exchange where they are commonly traded, to be deposited in a wallet, probably for long-term storage.

Lately, the number of BTCs on exchanges to be traded has decreased, while the number of those held in secure portfolios with the prospect of probably not moving them for long periods is increasing.

In other words, it appears that the bitcoin supply in the market is decreasing and, as demand remains high, this is not only causing the price to remain at a very high level, but it can also cause it to grow further.

Certainly the phenomenon that has caused the price of bitcoin to rise almost six times in the past five months may have been strongly influenced by a similar dynamic, that is, a stable, if not declining, supply of BTC in the market, while demand is growing strongly.

What does the million dollar transaction indicate?

What is really very curious is that the phenomenon of reduced bitcoin supply in the market continues, even with these current high price levels.

For those who own BTC and think the current price is too high, they would probably be tempted to put their bitcoin up for sale on exchanges.

Instead, the opposite seems to be happening – BTC withdrawals from stock exchanges to be safely stored for a long time.

This suggests that several bitcoin holders believe that the value of bitcoin is likely to remain, if not rise, and this could have a significant impact on the price trend in the coming months.

Of course, there is no evidence to support the assumption that the price of bitcoin will not fall, so those who believe it will continue to rise may be wrong. However, sometimes this type of prophecy is self-fulfilling, because the more people believe that the price of bitcoin will rise, the fewer people will be tricked into selling their BTC in the short term.

Source: cryptonomist

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