Analytics provider Santiment posted a tweet with data showing the supply of bitcoin on centralized crypto trading platforms has plummeted to its lowest level in six months. According to the Santiment, this is likely to prevent major Bitcoin sell-offs.
Santiment tweeted that Bitcoin is moving from crypto exchanges to wallets for long-term storage.
The ratio of #Bitcoin's supply on exchanges has
encouragingly slid down to its lowest since early January. The 6-month low is a promising sign, as it generally will indicate that there is a decreased risk of more major $BTC selloffs. https://t.co/vFh7pcjUmX pic.twitter.com/t3duiStvg6
— Santiment (@santimentfeed) July 5, 2021
Bitcoin on exchanges plunge to lowest level since January.
The world’s flagship cryptocurrency briefly bounced back to a critical level of $35,000 and hits $35,900, whales and retail users have begun to grab for Bitcoin in the downturn, while it is still well below its all-time high of $65,000 reached in April this year.
This factor demonstrates that the risks of any major sell-offs are quite low. As previously reported, large volumes of bitcoins were withdrawn from centralized digital exchanges in May, June and earlier.
Bitcoin Whales Are Buying
Bitcoin whales holding from 100 to 10 thousand BTC have accumulated 60 thousand BTC in one day.
This event coincided with Bitcoin Mining Difficulty Gets Biggest Drop In BTC History almost -28%.
The accumulation can also be linked with more decentralized Bitcoin network as miners are forced to leave China and its territories.
Bitcoin whales are buying BTC and have recorded the largest accumulation in one day, buying 60 thousand BTC.
Network data analyst firm Santiment said the whales bought 60,000 BTC in one day, the largest daily accumulation this year.
Bitcoin Mining Difficulty Gets Biggest Drop
According to btc.com data, the Bitcoin network adjusted to the massive drop in hash rate, the network’s mining difficulty dropped by -27.9%. This is the biggest drop in mining difficulty since the network went live in 2009.
Recently Bitcoin network faced two negative adjustments, -5.30 percent on June 14 and -15.97 percent on May 30, And on July 3rd, 2021 the network’s mining difficulty dropped by -27.9%.
Estimated next BTC mining difficulty, which will be calculated after 16 days hints further -28.39% drop.