Large Bitcoin transactions peak with volume of 10 million BTC in 1 day

The bitcoin price is slowly moving back up and the activity on the blockchain is also increasing again. At least if we look at the number of large transactions, because for the first time in two years there are ten million bitcoins in one day. changed hands. This is accompanied by a rising interest from institutional investors in the largest cryptocurrency.

What does this mean for the price in the short term? In general, it is not a good sign if the network is busy. Since this is often accompanied by a net inflow to the major stock exchange platforms, which is not good for the price. At the moment, however, we don’t see that and the reserves of the major stock exchanges remain about the same level and even move a little bit lower.

Lots of activity, but not at the fairs

If the huge volume on the blockchain does not translate into an influx of bitcoin for the major exchange platforms, it could mean two things. First, large institutional investors may simply move their bitcoin from one wallet to another. Another explanation is that the bitcoins are part of so-called over-the-counter (OTC) deals.

This means that direct deals are made between two parties, which generally do not involve a centralized exchange. Parties do this to pay lower trading costs and to avoid moving the price at the time of the transaction. After all, exchanges only have a limited number of bitcoin to trade and large transactions therefore still have the potential to influence the price.

Interestingly, big owners we often refer to as whales sold nearly 70,000 bitcoin in three days during the September 7 dump. To then buy almost all of them back at a discount of around 10 percent. It therefore seems that especially the big boys have benefited from the panic that erupted in the market at that time. Proving once again that simply buying and holding bitcoin is still the best strategy for most people.

Experienced hodlers stay put

The volatility of bitcoin seems to have an effect mainly on new bitcoiners. Where we see the activity of the relatively young wallets increase in times of fluctuating prices, the experienced hodlers remain calm. Bitcoiners who have been around for a while have seen this kind of price action before and are no longer afraid of a price drop of 10 percent or more.

At the time of writing, the bitcoin price is on the rise again and the panic seems to be slowly disappearing from the market. Although it always remains to be careful with these kinds of predictions when it comes to the crypto market. It only has to happen and we can make a huge jump up or a ditto fall down.

In that respect, the crypto market is a fantastic learning opportunity for anyone who wants to put their money to work. The action that we experience on an annual basis in this market sometimes takes the traditional financial world up to ten years. If you can survive in this market, you won’t be so easily confused by stocks and other financial products.

The post Large Bitcoin transactions peak with volume of 10 million BTC in 1 day appeared first on World Today News.

Source link

Leave a Comment