BlocksInform
Bitcoin has added 38% to its value in USD since the start of the month it was at a price of about $16,846. This makes January the best-performing month since October 2021, up 41 per cent, says glassnode.
The current rally was “fuelled by both historic spot demand and a sequence of short squeezes,” the analytics firm noted in its weekly report on Jan. 30.
He also reported that exchange rate flows had stabilised following the collapse of the FTX and the panic EXODUS of central offices.
'We also note that the initial momentum of outward foreign exchange flows, following ftx have calmed to neutral, and are now balanced by newly motivated flows.”
#Bitcoin markets have seen the strongest monthly price performance since Oct-2021.
This recovery is fed at the same time by a one-off demand and by a sequence of short pressures.
Are we exploring these dynamics through derivatives, and cash trade in our last article??https://t.co/yNWSv2eI2A
— glassnode (@glassnode) January 30, 2023
Bitcoin Exchange Movements Standardize.
Glassnode also noted that Bitcoin's chain transactions have grown by more than 50,000 daily over the past week. "We can't see a corresponding increase in foreign exchange deposits or cash out deposits," he added.
Foreign exchange trades represented 35% of the total, down from May 2021. Although FX flows have normalized since the collapse of the ftx, the amount of BTC held on them is still down.
The total balance of bitcoin stored on trading venues is approximately 2.25 million BTC, the report said. This represents 11.7% of the supply on the road and is at its lowest level in several years in February 2018.
Glassnode further submitted that the total amount of BTCs entering and leaving electoral districts was approximately $625 million per day in both directions. This shows that FX flows are now balanced in the wake of the late 2022 turbulence, when they were largely outgoing.
“Today, exchange net-flows have returned to neutral, reflecting a cooling down of outflows,”
Most of the exchange activity for the month has been whales (addresses with more than a thousand BTC), it noted. In January, whales contributed between $185 million and $215 million in total incoming and outgoing foreign currency.
BTC Price Outlook
BTC prices have taken a dip today, dropping 3% to $22,887 at the time of writing, according to CoinGecko. The asset came close to $24,000 on Jan. 30, but there was too much resistance.
Bitcoin prices have stayed lateral for the last seven days, but are up by 8% in the last fortnight. Bitcoin prices have stood on the side for the last seven days, but are up 8% in the last two weeks.
