A quant has pointed out some similarities between the current and summer 2020 Bitcoin markets through on-chain data. Bitcoin Exchange Supply Shock Ratio Has Rapidly Risen Recently As explained by an analyst in a CryptoQuant post, there seem to be some similarities between the current market trend and that during the summer of 2020. The “exchange supply” is an indicator that measures the total amount of Bitcoin present on wallets of all exchanges. This supply is usually assumed to be the selling supply of the crypto as investors generally transfer their coins to exchanges for selling purposes. The supply in cold wallets of investors, on the other hand, is likely being held for accumulation, and is unlikely to be sold. The ratio between this investor wallet supply and the exchange reserve is called the “exchange supply shock ratio.” When the value of this metric goes up, it means the supply on exchanges is dropping and investors are filling up their cold wallets. Related Reading | Bitcoin Futures Basis Nears One-Year Lows, How Will This Affect BTC? On the other hand, a downtrend suggests a push to sell from sellers as they deposit their Bitcoin to centralized exchanges. Now, here is a chart that shows the trend in the BTC exchange supply shock ratio over the past couple of years: The value of the indicator seems to have been on the rise recently | Source: CryptoQuant In the above graph, the quan...
XRP Price Prediction For 24 November
