For the past two weeks there was a notable surge in the amount of Bitcoin held in exchange wallets, with more than 35,000 BTC added.
Glassnode data shows that exchange balances started at approximately 3,000,466 BTC in early July, reached a high of 3,046,600 BTC on July 17, and settled at 3,035,711 BTC by the end of the month.
This rise is particularly striking given the overall trend of declining exchange balances over the past year.
Examining the link between exchange balances and Bitcoin prices reveals an intriguing pattern.
Typically, when more Bitcoin is held on exchanges, it indicates potential selling pressure, often leading to price drops.
This was observed on July 17, when an increase in exchange balances coincided with Bitcoin’s price falling to $64,120.
Interestingly, this pattern changed later in the month. Between July 23 and July 28, both exchange balances and Bitcoin prices increased together.
During this period, exchange balances grew from 3,027,282 BTC to 3,035,711 BTC, while the price rose from $65,929 to $68,222.
Alphractal, a cryptocurrency analysis firm, has voiced concerns about Bitcoin’s current market trajectory, suggesting it may be on the verge of entering a bear market phase.
Recent blockchain data reveals that a segment of Bitcoin investors has started selling off assets to lock in profits following a recent price surge.
CryptoCon confidently predicted an imminent bull market for Bitcoin, downplaying concerns of a recession or prolonged bear market.
Jeff Kendrick, global head of digital asset research at Standard Chartered, predicts Bitcoin could reach $200,000 by the end of 2025, regardless of the outcome of the 2024 US presidential election.