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Chainanalysis has recently published a report that shows that crypto exchange trading volume has risen to a new all-time high, mainly generated by bears.
Institutes have dropped out
On March 9, exchanges around the world saw activity from bears selling Bitcoin. Blockchain analytics company, Chainanalysis, said the tracked exchanges received around 475,000 Bitcoin on March 12 and 13, well above average.
The whole sell-off took place in the general panic caused by the corona virus, as stock markets, oil and other traditional assets fell to a new low and central banks pumped more and more money into these markets.
Although Bitcoin was generally considered a safe haven, especially in times like these, the price has plummeted by more than half since February. Not surprisingly, institutional investors in particular have sold Bitcoin.
Chainanalysis found that from 10 to 100 and 100 to 1,000 Bitcoin accounted for about 70 percent of all Bitcoin sent and received by crypto exchanges in the past few days, which is a slightly higher proportion than usual. 10 percent of them come from transactions of over 1,000 Bitcoin.
“These trends indicate that professional dealers with fuller bags and investors have driven the market, but have been supported by a large number of retailers in both selling and buying.”
The questions that have arisen are whether retailers can push the price up again on their own and whether institutional investors will come back to the market. Bitcoin has been running sideways since last Thursday, while traditional markets have slumped further. The BTC has even posted a 4 percent gain since the last market downturn.
“Given the uncertainty surrounding the COVID 19 pandemic, it is difficult to predict where the Bitcoin market will go next.”
© Picture via Pixabay, license
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