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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.

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This picture show a couple of bitcoins.

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.

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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.

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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.

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(Featured image by Clifford Photography via Unsplash)

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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.

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J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.