As accumulation continues, Bitcoin exchange supply hit a 6-month low

The number of bitcoins (Bitcoin) Since mid-May, stocks held on exchanges have been steadily declining, which convinced people that the worst period of market sell-off has passed.

According to data from crypto analysis company Santiment, at current levels, Bitcoin’s exchange supply is at its lowest level since early January. “The 6-month low is a promising sign because it usually indicates a reduced risk of more major sell-offs in BTC,” the analyst firm Tweet Monday morning.

In early May, exchange inflows began to soar, which may be a harbinger of Bitcoin’s sharp sell-off in the middle of this month.The Bitcoin sell-off intensified on May 19, eventually reaching $1.2 trillion The entire cryptocurrency market fell.

Transaction flow data is an important indicator for monitoring Bitcoin’s short- and medium-term price trends. As more and more investors transfer their holdings from cold wallets, possibly for selling, net inflows usually herald a sharp sell-off. For example: May, Bitcoin has experienced the largest exchange inflow Since the crash related to COVID-19 in March 2020.

related: BTC prices fell to fill the Bitcoin futures gap as the focus shifted to a bull market target of $46,500

Although Bitcoin is still in a solid intermediate downtrend, investors are looking for more reasons to be bullish. Adoption speed In Latin America and other places, Expected shifts in the mining industry There are more and more signs from China to other regions and the market has bottomed out, these are all reasons for optimism.

On the other hand, analysts continue to warn of uncertain prospects in the short term, and several well-known industry figures have issued warnings Call for more drastic amendments this year.