The Bitcoin price had been hovering around the $23,000 mark for over two months. However, in the last couple of days, the flagship currency reclaimed the $24,000 level- a move not seen since May.
However, at the moment, bitcoin is trading below $24,000 to trade at $23,965, down 2.04% over the past 24 hours.
Amid rising hopes of a bull run in BTC, an on-chain analytics firm-CryptoQuant– claims that the asset is still under bearish control.
Reportedly, for Bitcoin to see some change in market trends, the exchange flow trend needs to change soon. Today, in Cryptoquant’s Weekly Bitcoin Highlights, it was revealed that although there was an overall crypto market rally on Wednesday, August 10, Bitcoin was trading on a bearish note, possibly following the release of US CPI rates.
The analysis firm further explained the Exchange Inflow Spent Output value Bands that reveal the worth of Bitcoin addresses that have been registered on the exchange. This indication is used to understand the larger amount of Bitcoin addresses that have entered the exchange just after the inflation date was disclosed.
According to the firm’s survey on August 10, there has been a huge jump in the flow of bitcoins on exchanges from holders of 1k to 10k BTC.
CPI Effect On Bitcoin Price
It was on August 10 that the Consumer Price Index (CPI) data was released which depicts that the inflation has dropped from June’s 9.1% to 8.5% for the month of July. This affected the financial market as Crypto and Stocks spiked and Bitcoin and Ethereum saw an uptrend to 60-day highs. Here, Bitcoin closed the day at $25k and Ethereum just above $1,900.
Now, market participants are hopeful that as the inflation rate continues to decline, the Federal Reserve will not go ahead with its said rate hikes. The fall in inflation will also curb the slowdown pushing the global economy towards better days. However, the macroeconomic concern still needs to gain its clarity.
As per CryptoQuant’s research, Bitcoin must shift from spot exchanges like Coinbase into derivative exchanges in order to exit the market correction, which will be important to measure market risk-on attitudes, meaning that investors are prepared to invest with leverage or use Bitcoin as security for other activities.
The crypto market, especially bitcoin, is still under bear control despite CryptoQuant data, with many experts and analysts in the opinion that this will not last long.
