According to new research, rising Bitcoin balances on the stock exchanges are probably not a sign that investors are ready to sell.
Glassnode’s on-chain analyst, TXMC, revealed Data The latest from the exchanges, dated December 28, shows changes from Chinese users as the balances soar on the exchanges.
Binance “accepts” orphaned Huobi users
The situation became tense at the end of December when the Bitcoin price fluctuated in a range, combined with increased inflows into the exchange.
A classic indicator that traders are at least prepared for a downside risk if the price continues to weaken. Binance attracted particular attention when the exchange’s BTC stock rose.
At the same time, however, Chinese investors are being excluded from the international spot exchanges due to the ongoing action by the Chinese authorities against trading in cryptocurrencies.
Huobi Global, Huobi’s international trading platform, blocked access to its trading service for Chinese citizens on December 15. You have until the end of the month to sell the coins, then a year or two to withdraw the money and withdraw it from the account.
“As of 16:00 UTC (09 GMT) on December 31, 2021, Chinese users will not be able to sell their inventory or conduct CNY-related transactions.”
“If the user has not withdrawn a sell order before the shutdown, the system automatically cancels all outstanding sell orders. The payout function remains active for 1 to 2 years and with prior notice before closing. Chinese users are advised to dispose of their digital assets as soon as possible. “
As a result, these users could easily transfer tokens to other platforms, which explains the surge in balances on Binance.
“Binance recently hit the headlines when their foreign exchange balance rose. My hypothesis is that they will attract users from Huobi and elsewhere as China closes some exchanges towards the end of the year. Oddly enough, when you combine the balances of Binance and Huobi, the chart reflects a flat line. Net neutrality “.
Bitcoin market balance and BTC price: Huobi (blue), Binance (green), Combo (red) | Source: TXMC
Due to the lower vacation volume and an overall flatter market, concerns about a possible sell-off are increasing in the market.
The lack of liquidity could exacerbate an abrupt move with key institutional players not expected to return until next week.
However, there are still opportunities as retail investors keep building their BTC portfolios while larger investors are less secure.
According to analyst Willy Woo, a retail-driven mass sell-off can also be expected in the coming days.
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