An increase in the outflow of cryptocurrencies from exchanges and an increase in net inflows into stablecoins signal a bullish momentum in the market. Analysts at Bank of America came to this conclusion. Decrypt.
Experts noted the “easing of pressure from sellers” with the transition of the initiative to buyers of digital assets. As a result, from June 29 to July 26, market capitalization increased by 11%, which reduced the rate of decline since the beginning of the year to 56%.
“Limited supply and continuous outflows from exchanges indicate that investors continue to hold positions amid a rally in risk assets,” the report says.
Experts pointed to the stability of the trend despite the Fed raises the key rate immediately by 0.75%.
Analysts estimated the volume of withdrawn bitcoins from cryptocurrency platforms to cold wallets at ~$508 million, Ethereum at ~$381 million (data are given from July 2 to August 1). The first asset over this period has risen in price by 19%, the second – by 56%.
In stablecoins, inflows and outflows alternated. The most notable surge in the withdrawal of funds to non-custodial wallets in the amount of $437 million occurred in late June – early July.
“The outflow of “stablecoins” from exchanges to personal wallets occurs when investors seek to maintain the dollar value of their assets. This is often true during periods of declining prices for digital assets. When investors want to expand their risk appetite, they usually look to use stablecoins to buy cryptocurrencies.”experts explained.
Recall that in Glassnode doubted in the continuation of the Bitcoin recovery rally.
Previously, experts of the organization warnedthat it will take additional time for the price of bitcoin to reverse.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
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An increase in the outflow of cryptocurrencies from exchanges and an increase in net inflows into stablecoins signal a bullish momentum in the market. Analysts at Bank of America came to this conclusion. Decrypt.
Experts noted the “easing of pressure from sellers” with the transition of the initiative to buyers of digital assets. As a result, from June 29 to July 26, market capitalization increased by 11%, which reduced the rate of decline since the beginning of the year to 56%.
“Limited supply and continuous outflows from exchanges indicate that investors continue to hold positions amid a rally in risk assets,” the report says.
Experts pointed to the stability of the trend despite the Fed raises the key rate immediately by 0.75%.
Analysts estimated the volume of withdrawn bitcoins from cryptocurrency platforms to cold wallets at ~$508 million, Ethereum at ~$381 million (data are given from July 2 to August 1). The first asset over this period has risen in price by 19%, the second – by 56%.
In stablecoins, inflows and outflows alternated. The most notable surge in the withdrawal of funds to non-custodial wallets in the amount of $437 million occurred in late June – early July.
“The outflow of “stablecoins” from exchanges to personal wallets occurs when investors seek to maintain the dollar value of their assets. This is often true during periods of declining prices for digital assets. When investors want to expand their risk appetite, they usually look to use stablecoins to buy cryptocurrencies.”experts explained.
Recall that in Glassnode doubted in the continuation of the Bitcoin recovery rally.
Previously, experts of the organization warnedthat it will take additional time for the price of bitcoin to reverse.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
