Bitcoin price is currently testing $20K as the amount of BTC on exchanges hits its lowest level since November 2018.
A bullish resurgence was observed in Bitcoin price as the third quarter ended, as the data showed a significant increase in the flow of tokens from crypto exchanges and into private wallets.
Foreign exchange inflows are often considered bullish as it demonstrates market players have long-term confidence in assets rather than diluting them in the short term.
Reduced supply of Bitcoin on exchanges
According to crypto analytics platform Santiment, Bitcoin continues to see its supply rapidly move away from exchanges. This basically indicates that traders are showing more signs of being “satisfied with their current holdings”.
As a result of this trend, less than 9% of BTC is now live on exchanges for the first time since 2018. Santiment says this is “a good sign for the bulls.” Hinting at a new wave of traders’ confidence heading into Q4 is the fact that investors moved 34,723 BTC out of centralized exchanges on September 30th alone. The accumulation trend started. increased in mid-September.
According to Santiment data, the most recent sharp drop in Bitcoin balances occurred between September 29 and October 1. This is the fourth largest daily BTC outflow registered to the account. crypto assets this year.
On Wednesday, Bitcoin broke through the psychological $20,000 level. The latest rally comes after growing foreign pressure over the US halting interest rate hikes.
The United Nations Conference on Trade and Development (UNCTAD) warned of the risk of a global recession caused by monetary policy and the serious implications for developing countries while preparing for a new strategy. In a statement alongside its annual report, the agency said,
“Excessive monetary tightening could usher in a period of economic stagnation and uncertainty. The report suggests that any belief that they (central banks) will be able to lower prices by relying on higher interest rates without creating a recession, is a wise gamble.”
Read more: Bitcoin Miners Reserves Reach a Decade Low
The UN agency also asserted that higher interest rates, such as a rise in the US Feds, would have a more severe impact on emerging economies, which already face high levels of public and private debt. high. This development has been well received by the market, with several top altcoins, such as Ether, MATIC, and XRP, posting impressive gains.