Analysts at market intelligence firm CryptoQuant Pay attention Current patterns in Bitcoin (BTC) benchmarks indicate possible changes in market dynamics.
The price of Bitcoin is subject to short-term fluctuations
After a period of steady decline, cash exchange reserves have experienced a significant increase, reflecting an inflow of 20,000 Bitcoins. This increase indicates that more bitcoins are being deposited Exchangeswhich often indicates an intention to trade or sell.
This kind of behavior could add more selling pressure to the price of bitcoin, which has fallen nearly 7% over the past two weeks, an early sign of a potential short-term rally. Fluctuations.
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Simultaneously, net flows across all exchanges turned positive with a net increase of 15,800 BTC. This is a reversal from the mostly negative trend seen in recent weeks Inputs To exchanges now over the outflow.
According to CryptoQuant's analysis, when this change is combined with an increase in reserves, it strengthens the possibility of increased trading activity or profit taking by investors.
While the broader trend in the market has been in favor of accumulation and holding, these recent changes may reflect growing caution among investors who may be preparing to take profits or prepare for a potential price correction.
Additionally, Bloomberg reports that South Korean investors' interest in Bitcoin is a key metric to gauge amid the turmoil. The ongoing political crisis in this East Asian country has reached its highest level in four months.
As the political crisis unfolded, the volume of transactions increased
Known as the “Kimchi Premium,” the benchmark measures the price gap between Bitcoin on South Korean exchange Upbit and Coinbase. Recently, this premium has reached the range of 3-5%, which indicates increased demand from South Korean investors.
based on reportthe political landscape in South Korea has been tumultuous, especially after President Yoon Suk-yeol's brief and controversial declaration of martial law earlier this month, which lasted just six hours before being lifted.
Subsequently, the National Assembly impeached Yoon on December 14, suspended his powers, and promoted Prime Minister Han Deok-soo to Acting President. In a further development, parliament also voted to impeach Han, a historic first for an acting president in South Korea.
These political developments have shaken the financial markets at the same time as increasing economic challenges and increasing nuclear threats from North Korea. The South Korean won also decreased by 0.35% against the US dollar.
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According to Bloomberg, South Korea is one of the most active retail markets for digital currencies. Transaction volume Exchanges based in Korea often outperform traditional exchanges.
CryptoQuant founder and CEO Ki Young Jo pointed out that corporate accounts are not allowed on Korean crypto exchanges, meaning that the vast majority of crypto activity in the country is driven by retail investors.
Kimchi Premium is a well-known benchmark for measuring retail interest in digital currencies and factors such as tight currency controls and Fight against money laundering (AML) regulations have contributed to this phenomenon.
At the time of writing, Bitcoin is trading at $93,938, down 2.5% in the past 24 hours, with the nearest support level at $92,000, which would halt further declines in the top cryptocurrencies.
Featured image of DALL-E, chart from TradingView.com
