Bitcoin Market Sees Temporary Dip After Old Coins Hit Exchanges

Top tier data analytical platform CryptoQuant provided some analysis of the recent Bitcoin market volatility. The analysis of the platform’s CDD data showed that there was a decrease in the price of BTC when older coins are moved to exchanges. This trend reveals how even a small amount of aged BTC could affect the market in the short term.

CryptoQuant reveals that intraday CDD data demonstrates which age groups of Bitcoins effect the market in a certain way. Specifically, the data revealed high values: These are 4% for the BTC that are 3-5 years old, 8% for those that are 2-3 years old, 4% for those that are 12-18 months old and lastly 2% for the 6-12 months old BTC. These figures show that moving the older Bitcoins would cause an immediate effect on the price, although the quantities are small.

Asus Bitcoin Transfers Affect Market Dynamics?

CryptoQuant has also pointed out that transfers in the market tend to come in different sizes. Certain days have more old BTCs being pushed into the market, while others have fewer transactions. Nonetheless, the majority of intraday trading is carried out with new BTC that have little to no effect on the market.

Thus, the analysis stresses the need to consider CDD data alongside selling pressure to capture the market’s response in its entirety. This is that, when old BTC are transferred to exchanges, the price of Bitcoins goes down most of the times.

This recent analysis by CryptoQuant could be useful for investors and those who follow the market closely. It captures the interaction between the age of Bitcoins entering the market and the price movement that follows. Despite this, the market is rather stable and can quickly bounce back, especially when old Bitcoins are introduced.

Nevertheless, CryptoQuant highlights that such selling pressure is often transient given the small volumes being traded. Thus, the market is expected to return to normal in the short term after the first effects of the crisis.

The recent trend of the Bitcoin price decrease after the flow of the old coins to the exchanges proves the significance of CDD data for the market analysis. Although these events may have short-term effects of disturbing the market, it bounces back immediately. Investors are advised to remain knowledgeable and be more concerned with the long-term approaches to the dynamics of Bitcoin trading.