The amount of Bitcoin is being drained from exchanges and the balances of Bitcoin on exchanges are at their lowest levels since 2018.
What does that mean going forward? As supply gets drained from exchanges and there's max panic in the market where most of the panic sellers already sold that is usually where we see market bottoms.Fear based holders being washed out of the markets leaving market with mostly long term holders.
With liquidity drying up I believe this can actually create big moves upwards in the medium, long term.
That being said we need to take into consideration that FTX collapse might have a bigger ripple effect with other exchanges going down. Besides that it also caused huge loss of confidence in crypto which is bad for demand side.
But again FTX is not Bitcoin which is still working as it supposed to, again proving that decentralization is the key.
This might create a lot of new Bitcoin maxis, at least until the markets stabilize.
Historically the best time to buy Bitcoin was when its 70%, 80%, 90% down from all-time highs with peak fear and on-chain fundamental factors flashing oversold. And we kinda have all of those right now.
Can we go lower? Yeah... it is impossible to pick the exact low but this feels very muchlike 2015, 2019, 2020 situations. Only difference we have is the potential contagion effectof FTX. I still believe we are very close to the bottom.
The FTX hacker is dumping Ethereum and swapping big amounts of ETH into RenBTC.
Donald Trump is back on Twitter.
US Senator Josh Hawley demands top Democrats and Biden officials to release emails regarding FTX, Alameda Research and Sam Bankman-Fried.