Despite the fact that about $3 billion in Bitcoin (BTC) has moved from exchange platforms, selling pressure remains high.
Traders removed about $3 billion worth of Bitcoin (BTC) off controlled exchanges as the price of the biggest cryptocurrency soared to $39,000 after the Federal Reserve kept the country’s key rate steady.
Some investors felt reassured that the biggest cryptocurrency was attempting to rebound after the spectacular fall these few months. Nonetheless, the value of Bitcoin (BTC) took a dive to $36,000 after the emergence of other financial perils in the market, and Jerome Powell’s statements regarding inflation and monetary policy.
According to Powell, rising inflation in the United States could exacerbate the market in the months to come, prompting the regulating authorities to intervene in the first 6 months of 2022. Powell also said that he expects March to be the month during which the first-rate spike will occur.
The event was viewed as a risk-off for the market overall, and as a result, it had a negative impact on Bitcoin (BTC), which is viewed as a risk asset.
Even though a bear market is often determined by massive withdrawals from exchange platforms, institutional investors and large retail investors could engage in discount trading to acquire more cryptocurrencies in exchanges.
📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $1.7B in
⬅️ $2.9B out
📉 Net flow: -$1.2B#Ethereum $ETH
➡️ $919.5M in
⬅️ $732.0M out
📈 Net flow: +$187.5M#Tether (ERC20) $USDT
➡️ $925.1M in
⬅️ $791.8M out
📈 Net flow: +$133.3Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) January 27, 2022
During the market slump, an unnamed whale purchased nearly 500 Bitcoin (BTC). The same whale also had about 125,000 Bitcoin (BTC) in his wallet. For extra safeguarding, vast amounts of money are frequently kept in a cold wallet.
Though nearly $3 billion in cryptocurrencies were removed from exchange platforms, the price of Bitcoin (BTC) is continuously being pushed lower due to the selling pressure on the market.
Bitcoin (BTC) is currently changing hands at $36,268 and has lost 1.5% of its value since the beginning of the year. After the recent high, the biggest cryptocurrency has incurred a loss of 7%.