- The price of Bitcoin fell, creating FUD in the market.
- Long positions were liquidated, Open Interest increased.
Like Bitcoin’s [BTC] As the price dipped below the $29,000 range, uncertainty about the future began to mount again. However, a look at the state of BTC on exchanges can provide some context for what to expect from BTC in the future.
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Exchange behavior
According to Glassnode, Bitfinex had 320,000 BTC, Coinbase had 439,000 BTC, and Binance had 650,000 BTC, making them the top three exchanges with the most Bitcoin.
#Bitcoin falls below $29,000 as OI peaks as funding rates lower. Due to the largest long-term liquidation since July 24. pic.twitter.com/i86FKizQGf
— James V. Streets (@jimmyvs24) August 1, 2023
When analyzing the average withdrawal price of all exchanges (coins withdrawn from all exchanges), Bitfinex’s cost base was 10,000. This means that the Bitcoin they owned was bought on average at a price of around $10,000 per Bitcoin.
During the bull run of 2017, Bitfinex’s exchange rate balance rose from 11,000 to 370,000 BTC, after which coins were withdrawn at a similar amount and pace during the bear market.
Similarly, during the 2021 bull run, coins were unloaded at a similar rate. In anticipation of a future bull run in the next 18-24 months, it would be crucial to look at Bitfinex exchange rates.
Source: Glassnode
How are traders doing?
In terms of trading behavior, the open interest in Bitcoin was seen to start increasing incrementally. The reason for the increase in OI was due to BTC dropping below $29,000.
Read Bitcoin [BTC] Price forecast 2023-2024
Many traders were optimistic about BTC’s future and had gone long on the cryptocurrency. However, due to the fall in the price of BTC, many of these long positions were liquidated. Could this be the reason behind the king coin’s unusual behavior?
Source: mint glass
At the time of writing, Bitcoin was trading at USD 28,800. The MVRV ratio was also down, implying that most addresses were not profitable at the time of writing.
Source: Sentiment