As a seasoned crypto investor with a knack for deciphering market trends, I find the recent data on Bitcoin exchange inflows and miner outflows intriguing. The substantial drop in both since November 2024 indicates reduced selling pressure, which is a positive sign for long-term investors like myself.
The decline in exchange inflow from the peak of 98,748 BTC on Nov. 25 to as low as 11,000 coins per day in December suggests that traders may be holding onto their Bitcoin rather than selling it off. This trend, coupled with reduced miner outflow, indicates that even miners are not offloading their holdings as aggressively as before.
While the decline in miner outflow could be seen as a potential red flag due to reduced profit-taking opportunities, it’s essential to remember that they might be holding onto their coins for future gains. After all, miners are entrepreneurs at heart, always looking for the next big opportunity.
Now, regarding the prediction by Bitfinex analysts for Bitcoin to trade between $95,000-$110,000 in January, I’m cautiously optimistic. However, as Axel Adler rightly points out, we need an increase in daily trading volume to overcome resistance and see a significant move to the upside.
The rebound in inflows into Bitcoin ETFs is also noteworthy. It signals renewed interest from traditional finance and institutional investors, which could potentially drive the price of Bitcoin even higher.
So, as we navigate through January, let’s keep a close eye on trading volume and wait for the market to recover from the holiday season. As they say in crypto circles, “Buy the rumor, sell the news,” but remember, always “Don’t catch the falling knife… unless it’s a Lambo!
The total bitcoin (BTC) deposits into exchanges, known as exchange inflow, and the bitcoins sent from miners to exchanges, referred to as miner outflow, have noticeably decreased since November 2024, indicating a reduction in selling pressure.
Based on information from CryptoQuant, the largest influx of Bitcoin (BTC) into exchanges occurred on November 25, 2024, amounting to about 98,748 BTC. This peak in exchange inflows followed a period of around two months marked by increased activity related to BTC transfers to trading platforms.
Inflows to exchanges decreased in December 2024, yet they still held substantial value, as the daily amount of Bitcoin transferred to exchanges fluctuated between approximately 11,000 and 79,000 coins.
As an analyst, I noticed a decrease in Bitcoin inflows through exchanges, which coincided with less Bitcoins being mined and sold. This suggests that the selling pressure from Bitcoin miners, who often liquidate their BTC earnings to cover operational costs, has dwindled.
Miner outflows drop from November highs
Since the peak levels observed in November, there has been a consistent decrease in the amount of bitcoin being mined. This is due to miners cashing out their profits during Bitcoin’s unprecedented price surge following the election of Donald Trump.
According to data from CryptoQuant, miner outflows reached a high point on November 11, transferring around 25,367 Bitcoins to exchanges when the value of Bitcoin was roughly $88,000.
Beginning on New Year’s Day, 2025, miners transferred 5,489 Bitcoin to exchanges. This was followed by another 5,748 Bitcoin on the 2nd of January, and 2,133 Bitcoin on the 3rd.
Bitcoin needs to beef-up trading volume to rally in January
According to the analysis by Bitfinex experts, it is predicted that the price of Bitcoin will range from approximately $95,000 to $110,000 during the month of January.
Nevertheless, market analyst Axel Adler opines that for Bitcoin to break through resistance and experience a substantial upward trend, it requires a rise in its daily trading activity. In his post dated January 4th, he expressed this viewpoint.
“The market structure remains bullish, with no clear signs of being overheated. However, for a strong impulse, we lack sufficient trading volume. Therefore, we are waiting for the market to recover from the holiday season.”
Bitcoin exchange-traded funds are experiencing a resurgence as they see an increase in investments, following multiple days of substantial withdrawals. On January 3, 2025, there were inflows totaling $900 million.
This change in Exchange-Traded Fund (ETF) investments indicates that traditional finance and institutional investors are once again showing keen interest in Bitcoin.
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2025-01-04 23:49