Bitcoin, the leading cryptocurrency, touches the 7-year low level of exchange depositing addresses. According to the data shared by CryptoQuant, an on-chain analytics firm, Bitcoin ($BTC) depositing addresses have fallen to 132,100, the lowest level since 2016. This scenario has sparked much speculation in the crypto market, signalling reduced selling pressure and a bullish run.
Bitcoin Drops to Lowest Exchange Addresses Predicts the Reduced Selling pressure
The stats shared by CryptoQuant; this low number indicates that investors are not sending Bitcoins to the exchanges anymore. In other words, a lesser number of investors are selling coins on the spot exchanges, suggesting reduced selling pressure. The likely reason behind this is that investors are expecting the $BTC price to go up in the coming days which is why they are HODLing.
This shows the sentiments of the market as the majority of the investors are holding Bitcoins (BTC) instead of selling. This situation is driven by multiple factors i.e., price predictions, investors’ confidence in $BTC as a long-term crypto asset, or the lack of urgency at the existing price value. It is more likely that investors are accumulating $BTC as part of their strategic planning and are foreseeing the bullish run ahead.
Do $BTC Decreased Exchange Depositing Addresses Indicate Bullish Run?
If we look into past trends, this situation can predict the bullish run for which investors are accumulating $BTC instead of selling. October has always been a green phase for the crypto market and know to be Uptober in crypto. Keeping that thing in mind, investors are foreseeing the bullish run in the coming month and hence accumulating Bitcoin to yield maximum profits in the coming time.
