Recently, pseudo-anonymous on-chain crypto analyst “Dilution-proof” used data from crypto analytics startups CryptoQuant and Glassnode to show that despite Bitcoin’s recent price corrections, there is still strong demand for Bitcoin.
He started by saying that what was even more bullish than the Bitcoin price bouncing back at the end of last month was that that “this rise was accompanied by large exchange withdrawals.” Furthermore, this price increase “was not accompanied by a rise in funding rates, which is a sign that it was spot-markets driven.”
He also points out that since the market crash that occurred in March 2020, BTC balances on crypto exchanges have been steadily decreasing.
On the supply side, he says that since late March, miners have been “accumulating” rather than taking profits; furthermore, he says that “HODL’ers are not selling.”
He goes on to say that another sign of demand is that “the stablecoin reserves on spot exchanges are currently relatively high, which is potentially a signal that dry powder is ready to buy the next dip – or perhaps FOMO in if price runs away from them.”
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