Lots of transactions since last March
Cryptoquant identified 5 key moments when large amounts of Bitcoin changed, after not moving for several years.
- March 29: Moved 10,328 BTC when BTC price was at $47,700. This created a local crop, which led to change.
- May 13: Moved 2,800 BTC in a sale. The price went up for a month before falling further.
- July 20: 1,105 BTC traded at $23,000, which was a local high. The price fell 10% before rising again.
- August 28: Traded 5,000 BTC. Interestingly enough, this happens when the price is relatively low in the current range. Therefore, the environment is similar to the peak of May. The difference is that the current transaction is not sent to exchanges.
With the panic in the cryptocurrency market, long-term holders may also join the sell side and start dumping their holdings to avoid further losses. Usually, such a trend is one of the first signs of capitalization among investors.
If history is destined to repeat itself, we will see the impact of these transactions on the cryptocurrency market in the near future. In fact, Bitcoin is threatening to hit a 20-month low, with the price below $20,000.
The signs that worry the market for the beginning of the school year
First of all, the Ethereum Merge is an event that worries many investors and companies. In fact, many doubt an easy transition from ETH to ETH 2.0 which is why Binance has announced that it will stop ETH and ERC-20 deposits and withdrawals during the Merger.
The war in Ukraine and inflation continue to undermine the stock markets and consequently the cryptocurrency market which continues to fall into a bear market. Indeed, we see these elements in the speech of the chairman of the FED, Jerome Powell, during the annual Jackson Hole economic symposium.
“Also, labor market conditions are likely to ease. While rising interest rates, slow growth and easing labor market conditions will reduce inflation, they will also be painful for households and businesses. These are the unfortunate costs of reducing inflation. But if we fail to restore price stability, the pain will be much greater. »
However, bitcoin mining has struggled to post record 8-month gains despite the BTC price falling. This shows that signs can be positive, even in this very complicated period for bitcoin and cryptocurrencies.