With each passing day, more and more people join the crypto world. Many of them are attracted by the promise of the great profits that can be made in the market. Especially if you participate in the trading of cryptoactives through the multiple platforms that exist in the world. However, despite the popularity of trading, the amount of Bitcoin on exchanges is at its lowest level in a long time.
Huobi Vice President denounces CoinMarketCap bias
The importance of trading for the crypto world
It is impossible to underestimate the importance of exchanges for the crypto world. Well, it is these platforms that allow the communication of the different cryptosystems. Which are exchanged for each other within these exchanges, defining their value. Therefore, the value of the projects that support them, through the laws of supply and demand.
Thus, a person anywhere in the world who owns send eth from binance to Bitcoin Era, withdraw money with Bitcoin Trader, Bitcoin Billionaire vs gkfx, Immediate Edge list of coins, how do i buy ethereum on Bitcoin Profit, 1099 k Bitcoin Evolution, how to sell bitcoin gold Bitcoin Code, The News Spy download platform, Bitcoin Circuit review crypto, cannot buy bitcoin cash on Bitcoin Revolution and wants to acquire Ethereum, XRP or Dogecoin, just has to enter into their trust exchange, and carry out the exchange. This also opens the doors to the possibility of enriching yourself through trading. Taking advantage of the small (or large) variations in the price of cryptomonies to generate profits.
This has led to the fact that, over time, the general public has begun to relate cryptomonies to trading. With some people such as investor and crypto skeptic Peter Schiff stating that the only real value of Bitcoin is that it is a speculative financial asset. For some savvy investors to generate profits.
But beyond these judgments that overlook the infinite possibilities that Blockchain technology opens up. The truth is that trading has become very popular, as the main economically profitable activity in the market for Bitcoin and other cryptosystems. This doesn’t stop the amount of Bitcoin in exchanges from being at its lowest level in a long time.
The fall of Bitcoin generated panic in BitMEX at the time of the Halving
Less and less Bitcoin in exchange
Thus, a study by Glassnode, shows that the number of Bitcoin in the exchanges has been steadily decreasing since the end of March this year. It has dropped from over 2.6 million Bitcoins in the entire crypto market exchange ecosystem. To less than 2.35 million Bitcoins for this past week.
Such an abrupt drop in the amount of Bitcoin handled by exchanges represents the largest decrease in this statistic on record. It is probably the main culprit behind this negative performance in the economic crisis generated by the Coronavirus.
BTC’s exit from the crypto market began in mid-March. Just when the global financial market collapsed with the arrival of Covid-19 to the West. Dragging with it the price of Bitcoin and gold. This generated a crisis of confidence that led to massive withdrawals from Bitcoin by users of exchanges like BitMEX.
However, there is a more positive explanation for the crypto world. Well, the arrival of the third Bitcoin Halving has brought great optimism within the crypto community. It expects a substantial increase in the price of BTC. Therefore, large investors may be withdrawing their cryptos from the exchanges, to keep them waiting for the expected bullish rally.
Be that as it may, the truth is that this reduction of the money stored by users in the cryptos exchanges of the world, brings the crypto market back to the situation it was in at the beginning of 2019. Limiting the liquidity available by the large exchange platforms. And making this fall our Fact of the Day here at CritoTendencia.