Chainalysis posted report on the BTC market in March 2020. According to the blockchain analysis company, the exchanges have had a huge inflow of Bitcoin since March 9, receiving nearly 319,000 coins. March 13.
The flow increased sharply in the day of market crash Source: Chainalysis
Between March 12 and 13, nearly nine times the average daily amount of Bitcoin was sent to exchanges for sale, causing the price to plummet to $ 3,800. This represents the largest daily decline of BTC in the past seven years.
Is Bitcoin price stable yet?
Although the volume of cryptocurrency flows remains high - twice the daily average - according to Chainalysis, the BTC price seems to have stabilized for the time being.
Most of the excess bitcoin that has been sold to exchanges has been sold, and the worst oversupply seems to have ended by this time..
The company provides some possible explanations for the discount after such a turbulent time. Although transfers from 10 to 1,000 BTC account for 70% of the cryptocurrency's flow through the exchange, Chainalysis said the total amount of BTC was not enough to devalue further.
The majority of available bitcoins are not cashed out, suggesting that most bitcoin players are "happy" to hold. At an average of more than 712,000, the amount of bitcoins sent to exchanges over the past eight days is unprecedentedly large. But this extra 712,000 accounts for only 5% of the available bitcoins (all bitcoin mined minus all lost bitcoins).
Future disruption to the cryptocurrency market
With retail businesses closing across the United States and many companies being forced to let their employees work from home, the future of financial markets is uncertain. Restrictions on international travel to combat the spread of corona virus continue to change daily, which has delayed or canceled cryptocurrency events around the world.
Despite this uncertainty, Chainalysis still plans to use traditional indicators to track Bitcoin:
It is harder to predict where the bitcoin market will go next. However, the large increase in cash flow has proven to be a good indicator of increased volatility, so we recommend paying attention to the amount transferred to the exchange. We also hope that professional traders will continue to drive events, as opposed to retail traders, simply because they are responsible for a much larger volume. Chainalysis said.
According to Cointelegraph
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