Recent data from CryptoQuant reveals an increase in Bitcoin spending, with significant amounts being sent to exchanges. Bitcoins in the 1M-3M, 3M-6M, and 6M-12M age bands are the most affected.
Spent Output Age Bands (%)“40% of the sent #Bitcoin are in the 3M-6M range, 20% are in the 6M-12M range, and the remaining portion is mixed. These sent $BTC will create selling pressure.” – By @XBTManager Read more 👇https://t.co/D1VolwrEoP pic.twitter.com/7MM6dZ3L0J
— CryptoQuant.com (@cryptoquant_com) June 17, 2024
40% of Bitcoins Sent to Exchanges Are 3-6 Months Old
According to data, 40% of the used Bitcoins are between the 3M-6M, 20% between 6M-12M and the rest are in different age bands. This transferring of Bitcoins to exchanges will be a key driver of selling pressure in the market.
The analysis further has it that in the short run, this selling pressure will further be amplified by any hike in the price of Bitcoin. This also suggests that after a particular move up, the market might drop sharply, something that some analyst describe as the possibility of a free fall.
BTC Movement to Exchanges Highlights Market Unpredictability
The recent upsurge in BTC expenditure and its movement to exchanges demonstrate the unpredictability of the digital currencies market. Since volatility is relatively high in this market, market players such as investors and traders should get ready for such fluctuations in the price of *BTC*.
In general, this trend emphasizes the necessity of tracking Bitcoin expenditure trends as well as inflows to the exchange to have a better understanding of its future movement. As usual, it is always wise to remain awake and alert regarding any changes within the volatile space of cryptocurrencies.
