A new study claims that rising Bitcoin (BTC) stock exchange balances may not be a sign that investors are willing to sell.
Releasing the latest stock market data on Dec. 28, Glassnode chain analyst TXMC pointed the finger at recent changes in China for raising balances elsewhere.
Binance orphan “swallowed” Huobi user
At the end of December, he saw a nervous breakdown as the BTC price combined with the rise in the stock exchange rate.
Binance, a classic indication that traders are armed at least to avoid risk if there is further weakening in prices, has been particularly closely watched as BTC shares rise.
At the same time, Chinese investors have been alienated from international spot trading after China’s ongoing crackdown on cryptocurrency trading.
Huobi Global, the international office of the Chinese Huobi Exchange, on December 15 suspended access to trading services for Chinese citizens. They will have to sell the funds at the end of the month, and then withdraw within one to two years. a window will be available to delete them from their accounts.
“Until 16:00 (UTC) on December 31, 2021, users in the People’s Republic of China will no longer be able to sell their assets or conduct any CNY-related transactions,” the blog post states. as on closing day.
“If users still do not withdraw sale orders prior to the suspension, the system will automatically cancel all pending sale orders. The withdrawal function will remain in place for 1-2 years and be announced before it closes.Large Chinese users are advised to manage their digital assets as soon as possible.
As a result, users will be able to transfer tokens to other platforms, which explains the increase in Binance’s balance sheet.
“Binance has been in turmoil recently as the exchange balance has risen. My theory is that because China is closing some EOY exchanges, they are taking users away from Huobi and everywhere,” TXMC commented on graph supporting the idea.
“It’s interesting that if you combine the Binance + Huobi exchange balances, they’re on the sidelines. Net neutral.”
Bitcoin exchange balance and BTC / USD chart. Huobi (blue), Binance (green), gihiusa (red). Source: TXMC / Twitter
According to the Cointelegraph, sales concerns are growing due to the low holiday season and shallower overall markets.
Related: Veteran Bitcoin hodlers are still trading at record low BTC, despite seeing 70% profit in 2021.
This lack of liquidity could exacerbate any sudden move, with key institutional players only returning next week.
However, as retail investors continue to build BTC portfolios, large investors appear to be less optimistic.
According to the analysis, the retail -related mass sales event is also expected to be an unexpected event in the future.