In recent days, there has been a collapse in bitcoin deposits on exchange wallets.
The amount of daily inflow of #Bitcoin to known exchange wallets, as well as the total supply of $BTC on exchanges, have experienced a sharp 50-day drop, which may point to diminishing sell-side pressure. Read our take on the state of the markets here. https://t.co/WP37e4nrar pic.twitter.com/Fj0V77JU59
— Santiment (@santimentfeed) July 12, 2021
Santiment reports it, showing a graph that clearly shows the decline that began more or less in early July.
In particular, it has been around 50 days since the flash crash of May 19, which has continued a relatively constant decline in the overall BTC supply on the known wallets of exchanges.
All of this for Santiment could indicate a decrease in the ongoing bitcoin selling pressure .
In the graph, however, probably the most interesting element is the collapse of the deposit curve (the fuchsia one) starting from the beginning of July.
In fact, the level of bitcoin deposits on exchanges made yesterday (2,255 BTC) is by far the lowest in all of 2021 , with a real collapse, for example, compared to 18,900 BTC at the end of June.
Therefore, at the same time, a minimum annual peak was reached for this parameter, due to a real collapse in the last few days.
This is a real anomaly compared to everything that has happened so far in this 2021, and probably suggests quite clearly that there could be a real relaxation in the selling pressure taking place.
The reasons for the collapse of bitcoin deposits on exchange wallets
Generally, those who deposit BTC from a wallet external to that of an exchange do so in order to be able to sell them, or with the specific objective of getting rid of them. When these deposits collapse, it evidently means that few have any short-term intentions to get rid of their bitcoins.
Combining this data with that of the persistence of the accumulation of BTC by whales, the picture that emerges is of a relaxation of the selling pressure not accompanied, however, by an equivalent relaxation of the purchase pressure .
However, it must also be said that the still decidedly reduced volumes could also simply suggest a general reduction in activities and operations on the crypto markets, which could also justify the reduction of deposits without calling into question the reduction in sales pressure.
In fact, the price of bitcoin continues to remain relatively constant, more or less stable in an area between $ 33,000 and $ 34,000.
However, in the event that volumes and buying pressure increase sharply, such a low supply of bitcoin on exchanges could drive their price up. This has not yet occurred probably due to low volumes not able to significantly increase the buying pressure.