Monday, June 7, 2021

Holders move their cryptocurrencies - a prelude to further violent moves?

Bloomberg writes about cryptocurrencies again. It seems to be no news, but this time journalist Olga Kharif notes an interesting phenomenon. Reportedly, holders [...] https://www.pinterest.com/pin/1085437947660215829/

Bloomberg writes about cryptocurrencies again. It seems to be no news, but this time journalist Olga Kharif notes an interesting phenomenon. Reportedly, holders - that is, people who have kept their coins in wallets for a long time - have woken up from their winter sleep (this fact alone is already strange when you look out the window) and started moving their stashed Bitcoins. What does this mean? We are probably in for even more dramatic price fluctuations! A good change? At the start, however, it is necessary to explain that the analysis pays attention for people who held their cryptocurrencies for a period of six months to more than 2 years. According to Flipside Crypto experts, these funds have started to move since the beginning of the current year. "It's definitely a big change," - Eric Stone, head of data at Flipside, said in an interview. This "big change" could result in quite a bit of movement on exchanges. The number of active bitcoin has increased by 40 percent since last summer, according to Stone. A similar phenomenon preceded price fluctuations in 2015 and 2017. The million-dollar question (and maybe in some cases - literally!) is: will these boosted holders be sellers ("Selling, I prefer dollars!") or buyers of, say, altcoins ("Ethereum has dropped, maybe I'll buy some of it for BTC!")? In the cryptocurrency market, the concept of the whale is well-known. About 1,000 addresses control 85 percent of all bitcoin today. The respectable exchange monsters are often early adopters who have held their funds for several years. They didn't sell them because they saw the long-term price going up. Why get rid of the hens that lay the golden eggs? "We've definitely seen a lot of long-time bitcoin holders start to act up," - from David Balter, CEO of Flipside, however, nothing is hidden! "The fact that these wallets have been active recently leads us to believe that they may soon be active again. In other words: we have no reason to expect them to remain stagnant for another 2 years. - Stone adds. So are we in for another big wave of declines to complete the bursting bubble? Or maybe on the contrary - it is time for slow growth? We will probably find out soon. Tags downturn bitcoin Blockchain David Balter Ethereum Flipside Crypto bull market exchange rate

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