Bitcoin reserves on cryptocurrencies have gone to their lowest level since November 2018.
According to research group Santiment, bitcoin reserves on cryptocurrency exchanges are now at their lowest level since November 2018. At the beginning of the week, 40,572,000 BTC (approximately $778 million) were withdrawn from such platforms in one day alone, the largest daily outflow in the past four months, that is, since June 18.
What happened in October has several explanations. First, there is increased investment in bitcoins by large cryptocurrency market participants and their withdrawal from cryptocurrency exchanges for long-term storage.
Second, if you look at data from the research organization Hashrate Index, you will find that in August and September, mining companies whose shares are traded on exchanges and who publish financial statements sold fewer bitcoins than they mined. This happened for the first time since May of this year.
Recall that the total amount of bitcoin reserves at miners in October turned out to be at its lowest value in the last 12 years.
Finally, technical analysis shows that bitcoin has been in a bearish phase for a long time and therefore the probability of its transition to the growth stage is increasing. Thus, by the current moment 342 days have passed after the price of the cryptocurrency No. 1 reached a historical maximum of $69,045 thousand. That is, the asset has lost 72.45% in relation to its record.
The previous time, in 2018, the decline was 84% and took 364 days. In 2014, bitcoin was moving away from its record high of 85% and was in a bear market phase for 407 days. Bitcoin’s finding its “bottom” in 2018 and 2014 was accompanied by a sharp slowdown in its price volatility, which is still observed today.
According to Arcane Research, bitcoin’s price volatility has been 1.9% in the past 30 days, the lowest since October 2020. Bitcoin’s low volatility has been observed for 120 days. A similar period of low fluctuations in the price of the No. 1 cryptocurrency in 2018 was 130 days.