wBTC transaction volume spikes. This is what it means for BTC…
- wBTC saw a couple of 2,000 transfers for the first time in over a month.
- Inflow has dominated Bitcoin flow as the price remained bearish.
The wrapped version of Bitcoin [wBTC] recently experienced a significant surge. This move raised questions about whether holders were redeeming their BTCs and if it impacted the BTC trend.
Read Bitcoin’s [BTC] Price Prediction 2023-24
wBTC transaction volume spikes
On 1 July, the transaction volume of wrapped wBTC surged to over 7,000, marking the second occurrence of such a spike in over two months. However, the most notable activity on that day was related to top token transactions per Santiment.
There were two significant movements of 2,000 wBTC each, which decreased the supply of wBTC on exchanges. Notably, this whale transaction was the first in over a month.
As of this writing, the transaction volume exceeded 3,000, and the supply of wBTC on exchanges was approximately 3.4%. It’s important to understand that wrapped Bitcoin (wBTC) is a tokenized version of Bitcoin [BTC] that operates on a different blockchain network, commonly on the Ethereum blockchain. Its purpose is to provide the liquidity and functionality of BTC to decentralized applications (dApps) and smart contracts on the Ethereum platform.
Wrapping Bitcoin involves depositing a specific amount with a trusted custodian or third party. Once the BTC is deposited, an equivalent amount of wBTC is minted and issued to the user. Each wBTC token is designed to maintain a 1:1 peg with the underlying BTC, ensuring that it is backed by an equal amount of BTC held in reserve. This mechanism allows wBTC to represent and track the value of Bitcoin while being usable in the Ethereum ecosystem.
Tracking the trend of Bitcoin’s flow
As per CryptoQuant’s data, while not highly significant, BTC did experience a positive flow on exchanges in the past few days. As of this writing, the exchange flow recorded more inflow, with over 1,200 BTC entering the exchanges.
This observation indicated that more BTC was being deposited into exchanges rather than withdrawn from them during this period.
– How much are 1,10,100 wBTCs worth today
BTC stays trapped in the bear trend
Following a modest 1% price increase in the previous trading session on the daily timeframe, Bitcoin, once again, resumed its decline. At the time of writing, the price of BTC was approximately $29,500, reflecting a loss of nearly 1%.
Additionally, the Relative Strength Index (RSI) suggests that Bitcoin was still within a bearish trend, as it has been unable to break free from this downward trajectory.