Crypto
Crypto-markets are facing again an outflow of Bitcoin
A recent survey conducted by the author of Bitcoin’s Stock-to-Flow price forecast model showed that the majority of those involved in investing in Bitcoin do not intend to sell at any price, even if the asset comes close to zero. At the same time, the appearance of DeFi project tokens on crypto exchanges becomes a new impetus for increasing investor interest in such cryptocurrencies.
Fresh data from the Glassnode research company point to the real outcome of traders from crypto exchanges. Currently, only about 2.6 million Bitcoins are located on such centralized platforms, which is the lowest value in the last 21 months.
This fact is observed along with another record update on futures purchases of Bitcoin. Currently, $5 billion have been invested in these futures contracts for cryptocurrency.
Together, these two trends indicate three points:
Firstly, the cryptocurrency market is becoming more and more interesting for institutional investors.
Secondly, such investors are beginning to be typical Bitcoin holders who are not willing to sell their cryptocurrencies in the foreseeable future. That is why one can observe the outflow of funds from crypto exchanges.
Finally, the flowering of decentralized finance (DeFi) means an increase in the turnover of P2P transactions with Bitcoin, i.e. without financial intermediaries.
Download for free our companion app, Born2Invest, and read more about the outflow of Bitcoin on the crypto market and why investors don’t want to sell the number one cryptocurrency. Read the latest financial headlines with the best online news aggregator.
New DeFi projects and the increase interest of investors
DeFi (decentralized finance) is more and more overgrown with new projects, and the positive effect of this segment of the crypto market arises in the case of the price of such well-known cryptocurrencies like Bitcoin and Ethereum. At the same time, the appearance of DeFi project tokens on crypto-exchanges becomes a new impetus for increasing investor interest in such cryptocurrencies. Indeed, according to Messari, the daily trading turnover for the LINK token on the American Coinbase Pro platform has surpassed that for Bitcoin.
Another DeFi project, the Serum Project, was able to please investors with the fact that its native SRM token grew by 1500% immediately after it appeared on the FTX and Solana crypto exchanges on August 11th.
In only 10 days, from August 2nd to August 12th, native tokens of DeFi projects such as LINK and Band have risen in price by 100%. From a price point of view, this all resembles a boom in ICO projects, in which some investors have earned large sums of money, and some have suffered colossal losses.
A recent survey conducted by the author of Bitcoin’s Stock-to-Flow price forecast model showed that the majority (72.1 percent) of those involved in investing in the number one cryptocurrency do not intend to sell at any price, even if the asset comes close to zero.
For his part, the author of the Stock-to-Flow model is convinced that this investor behavior is due to the fact that Bitcoin will sooner or later reach the mark of $1 million.
Currently, chillers hold about 8.15 million Bitcoins, which are not actually present in the free sale. The consulting company Grayscale Investments noted that the current level of Bitcoin walker correlates with what happened in 2016, which increases the probability that the flagship asset of the crypto sector is able to update its historical maximum this year, that is to rise above the mark of $20,085.
__
(Featured image by Clifford Photography via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CLICK CHAIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
-
Crypto6 days ago
Bitcoin Hits New All-Time High above $106,000, But Altcoins Show Weakness
-
Crypto2 weeks ago
El Salvador To Change BTC Policy to Access IMF Loan of $1 Billion
-
Impact Investing4 days ago
BlackRock Removed from Indiana Pension Fund Management Over ESG Commitment
-
Crowdfunding1 week ago
Tenuta Licupi, a Hub of Eco-Sustainable and Technological Wine in Puglia, Is Collecting on Mamacrowd