Bitcoin worth $128 million sent to exchanges: What now?
As per past projections, rising exchange balances could drive Bitcoin lower. However, the king coin has evaded another downtrend, and September's projections are in.
- Bitcoin’s rise in exchange supply has not been able to impact the king coin’s value.
- A notable market player expected BTC to fall below $25,000 before September ends.
Between 6 and 7 September, about 5000 Bitcoin [BTC] were sent into exchanges, data from Glassnode showed. To assess this behavior, Glassnode offers a metric called the total Bitcoin exchange balance. By definition, the Bitcoin exchange balance is the total amount of coins held on exchanges.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Bitcoin: Ready to nuke?
As of 6 September, Bitcoin’s exchange balance was 2,304,401. But at press time, the amount had increased to 2,308,388. Most times, an increase in exchange balance suggests a rise in the participant’s motive to take profits. So, it is possible that the press time condition could lead to a BTC nuke in the short term.
Coincidentally, this same value was almost the same that Bitcoin miners sent into exchanges in June. Of course, the aftermath of the decision at that time was not favorable for the king coin. However, Bitcoin seems to have been able to weather the storm.
In the last 24 hours, the coin rose above $26,000, helping the crypto market cap grow by 1.19%. One metric that may have helped stabilize the price is the exchange outflow. The exchange outflow describes the amount of Bitcoin sent from exchange wallets into non-exchange wallets.
On the other hand, the exchange inflow is the amount of BTC sent from external wallets into exchange wallets. At press time, the exchange outflow was 3,929 while the exchange inflow was 2,978, meaning there were more investors willing to HODL than those willing to sell.
Prepare for the worst and hope for the best
But does this mean Bitcoin would have a much better September than August? AMBCrypto had a quick chat with Gracy Chen, Managing Director at crypto exchange Bitget, on the matter.
For Chen, BTC’s performance this month depends on a number of factors, some of which she highlighted in our discussion.
The Bitget MD said that the Federal Reserves’ decision on the interest rate could impact the BTC value. She noted that there could be rate cuts since the agency seemed committed to pushing the interest rate to 2%.
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As per the coin’s prediction, Chen mentioned that trading momentum could reduce due to the fatigue in the market. Due to this condition, she expected Bitcoin to decrease to $24,800, but there could be a recovery after.
She said,
“In September, unless there are significant negative factors in the market, it’s predicted that due to exhausted market hotspots and reduced trading momentum, BTC might test its previous low of $24,800 again. After that, a rebound is expected, with key levels to watch at $27,500, $28,000, and $29,000.”
