Turuosa ülempiirid
24h turumaht
6566
Aktiivsed krüptovaluutad
51.43%
Bitcoin Jaga

‘Paper’ Bitcoin On The Decline: What It Means For BTC

‘Paper’ Bitcoin On The Decline: What It Means For BTC


NewsBTC
2024-09-03 00:30:54

Data shows that the Paper Bitcoin inventory on exchanges has been on a decline recently. Here’s what it could imply for the cryptocurrency’s price. Bitcoin Inventory On Exchanges Has Seen A Drawdown Recently In a new post on X, analyst Willy Woo has discussed the latest trend in the Bitcoin inventory sitting on centralized exchanges. Such platforms have two types of reserves: Spot BTC and Paper BTC. Related Reading: Why Is Bitcoin Price Down Today? Key Reasons Explained The former of these is simply the actual tokens that the exchanges are holding on behalf of their users. This BTC naturally gets involved in normal trading activities. Paper BTC refers to the derivatives products related to the cryptocurrency that don’t involve the investors owning any BTC. This form of the asset wasn’t relevant to the market for much of BTC’s history, but in recent years, derivatives trading has gained popularity. So, the influence of Paper BTC has become notable. Below is the chart shared by the analyst that shows how the Bitcoin inventory on exchanges has changed over the last few years. As is visible in the graph, the combined Paper and Spot Bitcoin inventory had been on the rise earlier. The peak of this upward trajectory coincided with the asset’s crash under the $50,000 level last month. The exchange inventory going up has usually been bearish for the cryptocurrency, so this trend wasn’t surprising. After the plunge in the coin’s price, the metric had also seen a plummet and it was perhaps because of this reduction in the exchange inventory that the asset could recover. In the chart, Woo has also separately attached the data for the Spot BTC (bottom-most curve). This indicator makes it apparent which side was behind the exchange inventory increase witnessed earlier. Related Reading: Bitcoin Dogs Listing on Major Exchanges: 1000X Buy Pressure Incoming? Initially, the spot supply was also on the way up alongside the total exchange inventory. Still, midway through, the former fell to sideways movement while the latter kept rising. Thus, it would appear that the main increase in the exchange inventory leading up to the price crash was contributed by the printing of Paper BTC. Similarly, Paper BTC has destabilized the market in the past as well, with its influence at its peak just before the FTX crash in November 2022. Recently, the Bitcoin inventory on exchanges has plunged while the spot reserve has continued consolidating, suggesting Paper BTC has seen a wipeout. This means that while the coin has continued its bearish price action recently, at least the threat of Paper BTC isn’t looming over it. BTC Price At the time of writing, Bitcoin is trading at around $58,300, down more than 8% over the past week. Featured image from Dall-E, woocharts.com, chart from TradingView.com


Loe lahtiütlusest : Kogu meie veebisaidi, hüperlingitud saitide, seotud rakenduste, foorumite, ajaveebide, sotsiaalmeediakontode ja muude platvormide ("Sait") siin esitatud sisu on mõeldud ainult teie üldiseks teabeks, mis on hangitud kolmandate isikute allikatest. Me ei anna meie sisu osas mingeid garantiisid, sealhulgas täpsust ja ajakohastust, kuid mitte ainult. Ükski meie poolt pakutava sisu osa ei kujuta endast finantsnõustamist, õigusnõustamist ega muud nõustamist, mis on mõeldud teie konkreetseks toetumiseks mis tahes eesmärgil. Mis tahes kasutamine või sõltuvus meie sisust on ainuüksi omal vastutusel ja omal äranägemisel. Enne nende kasutamist peate oma teadustööd läbi viima, analüüsima ja kontrollima oma sisu. Kauplemine on väga riskantne tegevus, mis võib põhjustada suuri kahjusid, palun konsulteerige enne oma otsuse langetamist oma finantsnõustajaga. Meie saidi sisu ei tohi olla pakkumine ega pakkumine