- Between September 6th and 7th, approximately 5,000 Bitcoins were sent to exchanges, according to Glassnode’s data. To assess this behavior, Glassnode provides a metric called “total Bitcoin exchange balance.”
- As of September 6th, Bitcoin’s exchange balance was 2,304,401. However, at the time of writing, it had increased to 2,308,388. An increase in exchange balances often indicates an increased intention of participants to take profits.
- Exchange inflow is the amount of BTC sent from external wallets to exchange wallets. At the time of writing, the exchange outflow was 3,929, while the exchange inflow was 2,978, indicating that there were more investors looking to HODL (hold) than those looking to sell.
5,000 BTC were sent to exchanges between September 6th and 7th, but the withdrawn BTC were even more at the time of writing; How will this affect the Bitcoin price?
Increase in the Number of Bitcoins Deposited on Exchanges
Between September 6th and 7th, according to Glassnode data, approximately 5,000 Bitcoins were sent to exchanges. To assess this behavior, Glassnode provides a metric called “total Bitcoin exchange balance,” which is the total amount of coins held on exchanges by definition.
As of September 6th, Bitcoin’s exchange balance was 2,304,401. However, at the time of writing, it had increased to 2,308,388. An increase in exchange balances often indicates an increased intention of participants to take profits. Therefore, the current situation could potentially lead to a short-term BTC drop.
Coincidentally, this value was almost the same as the amount of Bitcoin miners sent to exchanges in June. Of course, the consequences of that decision didn’t seem to be negative for BTC.
In the last 24 hours, BTC has risen above $26,000, and the crypto market’s value has increased by 1.19%. A metric that could help stabilize the price is related to the outflow from exchanges. Exchange outflow explains the amount of Bitcoin sent from exchange wallets to non-exchange wallets.
On the other hand, exchange inflow is the amount of BTC sent from external wallets to exchange wallets. At the time of writing, the exchange outflow was 3,929, while the exchange inflow was 2,978, indicating that there were more investors looking to HODL than those looking to sell.
Prepare for the worst and hope for the best
Does this mean Bitcoin will have a better September than August? COINOTAG had a brief conversation with Gracy Chen, the General Manager of the crypto exchange Bitget, about this. According to Chen, BTC’s performance this month depends on several factors, some of which she highlighted in our discussion.
The General Manager of Bitget mentioned that the decision of the Federal Reserve regarding interest rates could affect the value of BTC. She stated that the institution seems determined to bring the inflation rate to 2%, which could lead to interest rate cuts.
In terms of price prediction, Chen noted that due to market fatigue, transaction momentum might decrease. For this reason, she expects Bitcoin to test its previous low of $24,800 in September, but a recovery may follow. She said:
“In September, barring significant negative factors in the market, it is expected that BTC will test the previous low of $24,800 due to market fatigue hotspots and declining transaction momentum. After that, it is worth watching the levels of $27,500, $28,000, and $29,000.”
