bitcoin achieved another positive price performance over the past week, with its price rising more than 14% in just seven days. However, the price of the leading cryptocurrency and the potential for an initial bull run could be under threat as investors appear to be cashing in on their gains.
According to the latest on-chain data, significant amounts of bitcoin have been moved to cryptocurrency exchanges in recent days.
btc Traders Move Massive Amounts to crypto Exchanges
crypto analyst Ali Martinez revealed, through a post on X, that massive amounts of bitcoin have been transferred to centralized exchanges in recent days. This revelation is based on “Exchange Inflow” data from blockchain analytics platform Glassnode.
According to the publish in X, around 20,000 btc worth over $880 million have been sent to well-known crypto exchange wallets in the last five days. When bitcoin (and most cryptocurrencies) move to exchanges, it usually means that some investors might be looking to sell their assets.
Around 20,000 $btc have been sent to acquaintances crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#crypto Changed wallets in the last five days worth over $880 million! pic.twitter.com/rfeuBSaSv8
– Ali (@ali_charts) December 8, 2023
Mass transfers to exchanges are not particularly promising for cryptoassets and their value, as they increase the number of cryptocurrencies available on the open market. As more bitcoin is transferred to exchanges, the supply available for sale increases, which could put downward pressure on the price.
However, it is worth noting that there has been no apparent impact on the value of btc so far. At the time of writing, the price of bitcoin stands at $44,260, reflecting a 2.2% increase in the last 24 hours.
How is bitcoin investor sentiment changing?
Interestingly, another recent data from Glassnode dispels the idea that investors may be losing faith in the leading cryptocurrency. The analytics platform revealed that long-term bitcoin investor sentiment has shifted to a state of belief. In fact, crypto expert Ali Martínez noted that this marks “a significant change in confidence” among investors.
<img decoding="async" class="aligncenter wp-image-268667 size-large" src="https://technicalterrence.com/wp-content/uploads/2023/12/Nearly-900-Million-in-Bitcoin-Sent-to-Exchanges-BTC-Price.jpeg" alt="bitcoin” width=”980″ height=”571″ srcset=”https://bitcoinist.com/wp-content/uploads/2023/12/GA0VLxmW8AAZI02.jpeg?w=2324 2324w, https://bitcoinist.com/wp-content/uploads/2023/12/GA0VLxmW8AAZI02.jpeg?w=640 640w, https://bitcoinist.com/wp-content/uploads/2023/12/GA0VLxmW8AAZI02.jpeg?w=768 768w, https://bitcoinist.com/wp-content/uploads/2023/12/GA0VLxmW8AAZI02.jpeg?w=980 980w, https://bitcoinist.com/wp-content/uploads/2023/12/GA0VLxmW8AAZI02.jpeg?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2023/12/GA0VLxmW8AAZI02.jpeg?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2023/12/GA0VLxmW8AAZI02.jpeg?w=750 750w, https://bitcoinist.com/wp-content/uploads/2023/12/GA0VLxmW8AAZI02.jpeg?w=1140 1140w” sizes=”(max-width: 980px) 100vw, 980px” data-recalc-dims=”1″/>
Chart showing btc long-term investor sentiment shift to belief | Source: Ali_charts/X
As shown in the chart above, this on-chain data disclosure is based on the long-term holder's net unrealized profit/loss (NUPL) metric. This metric takes into account the results of unspent transactions (UTXO) and serves as an indicator to evaluate long-term investor behavior.
Not surprisingly, btc optimism continues to strengthen as investors await the green light for the spot bitcoin ETF (exchange-traded fund) in the United States. Several btc spot ETF applications are under review by the Securities and Exchange Commission (SEC), with many expecting approvals in early 2024.
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/Nearly-900-Million-in-Bitcoin-Sent-to-Exchanges-BTC-Price" alt="bitcoin” width=”2174″ height=”1442″/>
bitcoin price approaches $45,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image by Barron, TradingView chart
