- wBTC saw a pair of 2,000 transfers for the first time in over a month.
- Inflows have dominated the Bitcoin flow as the price has remained bearish.
The wrapped version of Bitcoin [wBTC] has recently experienced a significant increase. This move raised questions about whether holders were exchanging their BTCs and whether this affected the BTC trend.
Read Bitcoin [BTC] Price Forecast 2023-24
wBTC transaction volume spikes
On July 1, the transaction volume of packaged wBTC rose to more than 7,000, marking the second such spike in more than two months. However, the most notable activity on that day was related to top token transactions per Sanitation.
There were two significant moves of 2,000 wBTC each, reducing the supply of wBTC on exchanges. This whale transaction, in particular, was the first in more than a month.
Source: Sentiment
At the time of writing, the transaction volume was over 3,000 and the supply of wBTC on exchanges was around 3.4%. It is important to understand that packaged Bitcoin (wBTC) is a tokenized version of Bitcoin [BTC] that runs on another blockchain network, usually on the Ethereum blockchain. The goal is to provide the liquidity and functionality of BTC to decentralized applications (dApps) and smart contracts on the Ethereum platform.
When packaging Bitcoin, a certain amount of money is deposited with a trusted custodian or a third party. Once the BTC is deposited, an equivalent amount of wBTC will be minted and issued to the user. Each wBTC token is designed to maintain a 1:1 peg to the underlying BTC so that it is backed by an equal amount of BTC held in reserve. This mechanism allows wBTC to display and track the value of Bitcoin while being usable in the Ethereum ecosystem.
Tracking the trend of Bitcoin’s flow
From from CryptoQuant data, while not very significant, BTC experienced a positive flow on exchanges in recent days. At the time of writing, the exchange stream was recording more inflows, with over 1,200 BTC entering the exchanges.
This observation indicated that more BTC was being deposited into exchanges rather than being withdrawn during this period.
Source: CryptoQuant
– How much are 1,10,100 wBTCs worth today
BTC remains caught in the bear trend
After a modest 1% price increase in the previous trading session on the daily timeframe, Bitcoin resumed its decline once again. At the time of writing, the price of BTC was around $29,500, reflecting a loss of nearly 1%.
Moreover, the Relative Strength Index (RSI) suggests that Bitcoin was still in a bearish trend as it was unable to break free from this downward trajectory.
Source: TradingView