Is The Tide Turning For Bitcoin? Recent Reserves And Netflows Indicate Market Reversal
Analyst at market intelligence firm CryptoQuant notes The current pattern of Bitcoin (BTC) indicators suggests a possible change in market dynamics.
Bitcoin price faces short-term volatility
After a period of steady decline, spot FX reserves saw a significant rise, with an inflow of 20,000 BTC. This increase indicates that more Bitcoins are being deposited comminicatewhich usually indicates an intention to trade or sell.
Such behavior could further add to selling pressure on Bitcoin prices, which have fallen nearly 7% in the past two weeks, suggesting early signs of a possible near-term collapse. volatility.
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At the same time, the net flows of all exchanges turned positive, with a net increase of 15,800 BTC. A reversal of the major negative trends of recent weeks means: inflow Currently, exchange outflows have exceeded outflows.
According to CryptoQuant’s analysis, combined with growing reserves, this shift increases the likelihood of increased trading activity or profit-taking by investors.
While the overall trend in the market favors accumulation and self-custody, these recent changes may reflect growing caution among investors who may be preparing to take profits or prepare for a potential price correction.
Separately, a Bloomberg report highlighted a key measure of South Korean investor interest in Bitcoin, which has risen to a four-month high amid ongoing political turmoil in the East Asian country.
Trading volumes surge as political crisis unfolds
The metric is called the “Kimchi Premium” and measures the price gap between Bitcoin on South Korean exchanges Upbit and Coinbase. Recently, this premium has surged to 3-5%, indicating increased demand from Korean investors.
according to ReportSouth Korea’s political landscape has been volatile, especially after President Yoon Seok-yeol declared martial law earlier this month, which lasted only six hours before being lifted.
Subsequently, the National Assembly impeached Yoon Zheng on December 14, suspended his powers, and appointed Prime Minister Han Deok-soo as acting president. In a further development, parliament also voted to impeach President South Korea, marking a historic first for an acting president in South Korea.
These political turmoils have roiled financial markets and come amid growing economic challenges and a growing nuclear threat from North Korea. The South Korean won also fell 0.35% against the U.S. dollar.
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According to Bloomberg, South Korea remains one of the most active retail markets for cryptocurrencies, trading volume Trading volumes on Korean exchanges tend to exceed those of traditional stock exchanges.
CryptoQuant founder and CEO Ki Young Ju noted that South Korean cryptocurrency exchanges do not allow corporate accounts, meaning the vast majority of cryptocurrency activity in the country is driven by retail investors.
The pickle premium has become a well-known indicator of retail interest in cryptocurrencies, as well as factors such as tight currency controls and monetary policy. Anti-money laundering (Anti-money laundering) regulations contribute to this phenomenon.
At the time of writing, BTC price stood at $93,938, down 2.5% in the past 24 hours, with its nearest support at $92,000, which prevented further losses for the top cryptocurrency on the market.
Featured images from DALL-E, charts from TradingView.com
