Bitcoin Pushes $20K as BTC Supply on Exchanges Lowest Since November 2018
A bullish revival was observed in Bitcoin’s price as the third quarter drew to a close, as data suggests a significant uptick in the outflows of tokens from crypto exchanges and into personal wallets.
Exchange outflows are typically perceived as bullish for prices since it demonstrates market players having long-term convictions in the asset instead of offloading them in the near term.
Drop in Bitcoin’s Supply on Exchanges
According to the crypto-analytic platform Santiment, Bitcoin continues to see its supply rapidly moving away from exchanges. This essentially indicated that traders are showing further signs of “being content with their current holdings.”
As a result of this trend, less than 9% of BTC currently exists on exchanges for the first time since 2018. Santiment stated that this “is a good bode of confidence for bulls.” Hinting at a new wave of trader confidence heading into the fourth quarter was the transfer of 34,723 BTC out of centralized exchanges by investors on September 30 alone. The accumulation trend started gaining momentum in mid-September.
As per Santiment’s data, the most recent steep fall in Bitcoin balances occurred between September 29 and October 1. This is the fourth largest daily BTC outflow that has been registered for the crypto asset this year.
On Wednesday, Bitcoin broke above the $20,000 psychological level. The latest rally follows the intensive foreign pressure on the US to stop hiking interest rates.
The United Nations Conference on Trade and Development (UNCTAD) warned of the risk of a monetary policy-induced global recession and serious implications for developing countries while pitching for a new strategy. In a statement alongside its annual report, the agency said,
“Excessive monetary tightening could usher in a period of stagnation and economic instability. Any belief that they (central banks) will be able to bring down prices by relying on higher interest rates without generating a recession is, the report suggests, an imprudent gamble.”
The UN agency also asserted that higher interest rates, such as hikes by the US Feds, would have a more severe impact on emerging economies, which are already plagued with high levels of private and public debt. The development was well-received by the market, with several top altcoins, such as Ether, MATIC, and XRP, posting impressive gains.
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