The increase in the price of Bitcoin will see a significant flow of assets on the crypto exchange
The price of Bitcoin (BTC) briefly touched the $35,000 mark for the first time in a year, with major crypto exchanges recording net inflows on October 24. Moving funds away from exchanges is seen as a big sign, as traders move their assets from currency to storage, and prices rise.
According to data shared by crypto analytical firm CoinGlass, Binance saw the largest outflow, shedding more than $500 million on the exchange in the past 24 hours, followed by crypto.com with $49.4 million in spending, and OKX with $31 million. Most of the other exchanges have recorded costs of less than $20 million.
After the fall of FTX in November 2022, fears of a “bank run” led to an exit from crypto platforms. But recent spending flows are more in line with trader sentiment than fear-fueled spending during the extreme bear market. Data from Glassnode confirms that Bitcoin has been withdrawn from exchanges over the past few days in line with the rise in BTC prices.
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The price hike resulted in the liquidation of nearly $400 million of short positions. Over the past 24 hours, 94,755 traders have seen their positions canceled. The largest single liquid order occurred on Binance with a value of $9.98 million.
Analysts on the chain refer to the market value to market value ratio (MVRV), a measure that compares a property's market value to its perceived value. It is calculated by dividing the cryptocurrency market capitalization by the acquired capitalization. The guaranteed value is determined by the average price at which each coin or token was last traded on-chain. The MVRV ratio currently stands at 1.47. The last time there was a bull run, the MVRV ratio was 1.5.
#Bitcoin has reached $35,000. Profit of wallets reached 79.72%.
The bull market starts when the MV Ratio stays above 1.5.
We are now at 1.47. I'm positive that #bitcoin will hit $40K in the next few days, sending the MV ratio to 1.6. pic.twitter.com/uCgdNLGRnq
— hitesh.eth (@hmalviya9) October 24, 2023
The total value of the crypto market rose more than 7.3% in the last 24 hours to $1.25 trillion, the highest value since April. The trigger behind the tension is believed to be more speculation surrounding the launch of a bitcoin exchange-traded fund.
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