The amount of bitcoins (BTC) is decreasing, but the price is falling in connection with the crypto pump and dump in telegram!
Based on on-net data from Glassnode, the number of bitcoins (BTC) on cryptocurrency exchanges has dropped significantly. Moreover, this decline has continued over the past few weeks. So where is all this bitcoin (BTC) going and how can the price drop so low? What is the scope of Bitcoin inflation?
Decrease in the amount of Bitcoins
According to Glassnode, the number of bitcoins (BTC) on exchanges has dropped to the level of February 2018. The number of bitcoins that hit the bottom when the price is in the $ 6,000 to $ 10,000 range cannot prevent a downward trend in price.
As you can see in the chart above, the amount of BTC available on exchanges has decreased significantly. Between January 2017 and January 2018, the number of bitcoins on exchanges increased along with the price. However, while the price declined in January 2019 and March 2020, the amount of BTC on exchanges continued to rise. Although the price has risen for the first time since this period, the number of bitcoins on cryptocurrency exchanges is decreasing by the pump and dump in telegram.
Where are bitcoins (BTC) going?
Investors keep their investments in safer cold wallets from the risk of exchange hacking. This path, especially for medium and long-term investors, requires a reduction in selling pressure on price. But why does the price keep falling? Of course, this is due to short-term investors who are actively investing in cryptocurrencies on exchanges. In particular, a significant proportion of new investors continue to open positions depending on important news that dominates the markets.
Glassnode says the following about this:
- “Net surplus between exchanges continued to decline as the inflows seen in May were absorbed by the market and investors moved their assets to cold wallets.”
- If the price reaches its medium-term targets, it will again increase the entry of bitcoins into the stock markets. However, this situation remains a positive moment for the price so far.
- Bitcoin continues to find buyers below $ 44,000. Critically, when the price, which tests 42,000 levels many times throughout the day, closes daily, the Fed meeting scheduled for Wednesday continues to worry cryptocurrency investors – experts of SafeTrading.
Is bitcoin a safe heaven against inflation?
A significant portion of cryptocurrency investors sees bitcoin (BTC) as a safe haven against inflation. But can this thesis be supported by data? For many countries, we can say this to a large extent by looking at the past 5 years. But are American investors convinced? Bitcoin (BTC) is not inflation insurance, according to SafeTrading.
Bitcoin (BTC) and inflation in America
Chainalysis’s recent comments say there is no statistical correlation between bitcoin and inflation. However, this situation does not scare off some investors, many cryptocurrency investors still consider Bitcoin to be the strongest anti-inflation tool.
Kim Grauer, head of research at the company, said:
- “We cannot find a statistical relationship between inflation in America and the price of bitcoins. However, we know that many people hold bitcoins to protect their portfolios from inflation. ”
Inflation has often been a major issue on the agenda in underdeveloped and developing countries. Thanks to the pandemic, this issue has returned to America’s agenda. Inflation, which has been talked about for the past two years, has reached a record high this year. Inflation, which will peak in the last 10 years at 5% +, has become a serious problem for America. During the year, many investment experts suggested that citizens store bitcoins to hedge against inflation.
But the analyst firm’s surveys say this is not backed up by numbers. If Bitcoin can prove itself in this regard in the coming years, it will win a big war in pump and dump in telegram. Bitcoin can now be an inflation haven, which no one can deny.
Bitcoin and inflation in other countries
It would be unwise to ask a Venezuelan citizen about this. In this country, where the inflation rate is 10 percent a year, not only bitcoin but almost everything of value can be used against inflation. Countries such as Venezuela and Nigeria are struggling with extremely high inflation rates. Naturally, a significant part of its citizens cannot find another way out of cryptocurrencies.
We are talking about affordable, valuable, and practical cryptocurrencies. Citizens of countries struggling with high inflation can clearly understand how important these features are. According to some reports, even in our country, unofficial inflation rates exceeded 50%. Anyone shopping at the grocery store will easily notice this.
Bitcoin (BTC) may not be a proven safe haven for US citizens, but citizens of many countries think differently – analysts of SafeTrading.
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