There are more inflows than outflows at the top seven leading cryptocurrency exchanges, including Binance, BitMex, and OKEx, according to statistics from Token Analyst.
On average, $47.2 million was deposited and $44.9 million withdrawn on Feb 18, 2020.
🚨 Feb-18 $BTC on-chain flows:#binance $89.8M in | $85.6M out#bitstamp $33.4M in | $33.3M out#bitmex $33.9M in | $27.7M out#bitfinex $19.2M in | $19.8M out#huobi $61.7M in | $64.3M out#kraken $36.5M in | $49.9M out#okex $55.2M in | $34.2M out
— TokenAnalyst (@thetokenanalyst) February 19, 2020
Crypto Markets Correction
The revelation is a relief for the crypto market.
From price charts, it appears as if bulls are exhausted following parabolic rallies that saw the value of some digital assets like Ethereum Classic, Ethereum, and Tezos post impressive gains, pushing them to a new valuation.
Ethereum Classic, for instance, nearly tripled, soaring to around $3.5 in Q4 2019 to $11 in Jan 2020.
Similarly, Tezos (XTZ) boosted by new developments and heavy involvement from the French—including a research team with links to the government working on Tenderbake, and French Army and the Information & Public Relations Center (SIRPA), soared to new all-time highs.
Other altcoins posted extra-ordinary performances as well thanks in part to a bullish Bitcoin which for the first time in 2020 broke above $10,000. The level is an important resistance level.
Traders are Bullish
The inflow of new cash into the crypto market is definitely a mark of confidence. It also shows that market participants, despite the recent lull, are bullish of what lies ahead.
🔭Whom to watch in 2020
⚖️#Libra governments say❌. Central banks move ahead. What now?
— DAO Maker (@TheDaoMaker) February 14, 2020
Specifically, the buzz around Bitcoin halving is creating an aura of expectation. Previous events saw prices rally in subsequent months.
However, compared to leaps made in recent years, this year’s halving could either thrust BTC prices to new highs, or see price flat-line before dropping even if demand is constant, or even higher.
Bitcoin Halving: will Price Drop or Rally after May 2020
Debate around post-Bitcoin halving price trajectory varies.
Some analysts and crypto commentators are expectant that more gains are in the pipeline because market forces are yet to price in BTC’s forthcoming rally.
The Bitcoin halving is not priced in.
— Pomp 🌪 (@APompliano) February 17, 2020
Yet some are adamant that the rally to $10,500 marks the tipping point of BTC prices. Subsequent sessions, they believe, would see prices crumble.
US Plans to Regulate Cryptocurrencies
The optimism also comes when US government officials plan to draft laws that would shield the USD hegemony and discourage the use of cryptocurrencies, especially Bitcoin—partly because of its popularity, and privacy coins like Monero.
The contention is that privacy coin mixers and obfuscation of transactions are illegal.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich