Many different statistics can be attributed to Bitcoin at any given time. Looking at the number of Bitcoin exchange deposits – or lack thereof – is always valuable. Fewer people moving BTC to exchanges is a positive sign.
Bitcoin Exchange Deposits Drop Again
It is always pertinent to put data and metrics in the right perspective. As far as Bitcoin exchange deposits are concerned, there will always be some potential discrepancies. These are transfers made to known exchange addresses through on-chain transactions. If an exchange doesn’t label a specific address as “theirs”, it will simply not be included in this list.
Keeping all of that in mind, there still is a seemingly notable decrease in exchange deposits. In fact, a new three-month low has been recorded not that long ago. It is the second time in about a week such low values are recorded. This may have something to do with the ongoing Bitcoin price uptrend.
To put this in perspective, a three-month low still represents 1,399.042 BTC deposited in 24 hours. That value represents, at current prices, roughly $16 million. It is not all that much when compared to the overall trading volume for BTC. A market that notes between $15 billion and $20 billion a day in trades won’t see much effect from $15 million in deposits.
However, it is not the first time these numbers appear to be going down either. There are simply fewer BTC on exchanges than normal. Miners aren’t depositing as much BTC anymore, and neither are regular users. In fact, it seems as if all exchanges hold fewer BTC than in years prior. Combined with decreasing exchange deposits, things are bound to get rather interesting.
Will Bitcoin Keep Surging?
The bigger question is how this will impact the market value of Bitcoin. Fewer exchange deposits can lead to less liquidity. That, in turn, can push the BTC price either up or down, depending on the overarching sentiment. For now, that sentiment is bullish, but it remains a volatile market first and foremost.
Considering how one BTC is currently valued at over $11,375, one has to wonder what potential price targets may be. Pushing through to $12,000 one possible outcome, but it won’t come easy. Anything beyond that price point seems to be off-limits for now.
On the other side of the spectrum, staying above $11,000 is not a guarantee either. There is so much financial uncertainty out there that everything remains subject to imminent changes. Bitcoin’s value has been suppressed for a while now, but there is no indication that the situation has fully come to an end.