Bitcoin after Uptober lull: Does this data point to a breakout?

• It was probably the biggest disappointment of the year. Instead of kicking off the year-end rally, Bitcoin, Ethereum, and many other cryptocurrencies are experiencing the worst “Uptober” in the last seven years.
• Although Bitcoin managed to reclaim the $110,000 mark yesterday, this upward movement is on shaky ground.
• This confirms one thing: Bitcoin's price performance in October was the worst it has been since 2018. At the end of the month, the price was 3.69 percent lower than the average.
• This development is also reflected in the performance of Bitcoin spot ETFs in the US. Outflows of $1.14 billion were recorded in the last three trading days.
• However, looking at the overall monthly performance, the index funds recorded net inflows of 3.6 billion US dollars.
• The fact that Bitcoin's performance is still so modest is probably also due to increased profit-taking by so-called “long-term whales”, i.e., large investors who have been invested for a long period of time.
• However, if one trusts the assessment of various analysts on CryptoQuant, then the dry spell for the cryptocurrency could slowly be coming to an end.
• Bitcoin withdrawals on Binance, the largest crypto exchange, more than quadrupled in the last three trading days, from 850 to more than 3,500 transactions.
• The analyst's conclusion: “Given the high volatility in October, this development can be interpreted as a sign of growing confidence in long-term holdings and the beginning of a new wave of accumulation by institutional investors or 'whales'.”
• Overall, this should slightly reduce the selling pressure on Bitcoin.
• And then there's “the strongest bullish signal for the crypto market in recent memory.” And this signal comes from stablecoins.
• Binance alone recorded inflows of over $7 billion this month – a record high. The majority of these inflows consisted of USDT ($5 billion) and USDC ($2 billion).
• The outflow of Bitcoin and Ethereum, coupled with an inflow of stablecoins, leads the CryptoQuant analyst to only one conclusion: “Investors are waiting for buying opportunities.”

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source

• Bitcoin Monthly Returns
• BTC ETF Performance
• Analysis of Bitcoin outflows on CryptoQuant
• Stablecoin inflows on Binance

Eine Quelle: btc-echo.de