In the past 24 hours, the amount of Bitcoin held on exchanges has seen a significant increase of around 10,000 BTC. This sudden fluctuation has raised concerns among investors, leading to speculations about the possibility of high price volatility for Bitcoin in the near future.
Renowned blockchain analytics company, Glassnode, has confirmed this development. On July 29th, the balance of Bitcoin on exchanges reached its highest level in three months, totaling 9.4 million USD.
The unexpected growth in Bitcoin reserves on exchanges has left investors worried, especially considering that the price of Bitcoin recently dropped to around 29,000 USD.
Typically, an increase in the supply on exchanges indicates a selling trend by holders, and this could potentially impact the market value of Bitcoin.
Interestingly, this price surge hasn’t attracted short-term holders, who are usually lured in by significant price increases.
Data from IntoTheBlock shows that despite continuous accumulation by long-term holders, the price of Bitcoin may not respond positively.
Previously, when Bitcoin reached its yearly high at 31,500 USD, its price trajectory didn’t change significantly.
In summary, the notable increase in the amount of Bitcoin on exchanges has raised concerning signals, and it requires close monitoring to see how the cryptocurrency market will develop. Investors need to pay attention and keep track of further developments to make informed investment decisions.