What will happen to the price of cryptocurrency?
The volume of bitcoin reserves on cryptocurrency trading platforms has been rapidly falling lately, having been at the minimum level for 12 months. One of the reasons for this development was that the supposedly research unit of Coinbase, the largest US crypto exchange, COINBASE Analytics, can begin to actively work with the US authorities. Cooperation involves controlling cryptocurrencies so that they are not used as a tool to circumvent the sanctions that Washington imposes on a number of countries.
This information has been refuted by the cryptocurrency exchange itself. However, indirectly, representatives of the organization said that their structural unit, Coinbase Analytics, is an autonomous organization from the trading platform and does not physically have access to information about traders. This is the same data that Coinbase collects from all its users in accordance with US law. It is worth noting that the US authorities have already been able to effectively track suspicious financial transactions on the blockchain. To do this, they collaborate with such analytical companies as Chainalysis and Cyphertrace.
As a result, the trend towards the departure of traders from crypto-exchanges nevertheless continued, and the net outflow of bitcoins over the past 24 hours amounted to 197.195 thousand bitcoins. The total volume of this cryptocurrency in the reserves of the crypto-exchanges fell to 1,089,256.474 bitcoins. According to WhaleAlerts, large transfers of bitcoins from Coinbase accounts to other digital wallets were recorded.
How will the outflow of funds from crypto exchanges affect? Given that the decline in bitcoin reserves in the cryptocurrency exchange market has been observed as a trend since March, Glassnode analyst firm believes that this indicates a new phase in the accumulation of bitcoins by market players. Such a pattern was observed, for example, in early 2019, when the price of bitcoin reached $ 4 thousand.
After it began to grow gradually, reaching almost 14 thousand dollars in June last year, at the same time, the reserves of bitcoins on crypto exchanges began to fall. If so, then there is a good chance that we are seeing a signal indicating a possible increase in the price of bitcoin in the foreseeable future.
