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Bitcoin Exchange balance keeps going lower. Some analysts say this is due to Bitcoin halving even though I’m not sure I understand the correlation. How do we escape this volatility in the market?

Bitcoin Exchange balance keeps going lower. Some analysts say this is due to Bitcoin halving even though I’m not sure I understand the correlation. How do we escape this volatility in the market?



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25 Comments

  1. it probably means adoption from institution investors, institutions wont keep bitcoin in exchange and they buy a lot more than retail investors. This also explains the bitcoin price movement basic same with tech stocks, which is very bad thing, but it is what is happening right now.

  2. Holding bitcoin on an exchange serves no purpose other than facilitating easier exit. It’s neither a good place to hold Bitcoin for a longer term, nor a good place to deploy it productively, either by seeking yield, collateralizing a loan or transacting with it in some other way. An exchange isn’t a bank.

  3. The crypto market as a whole is still very young and the traditional equity investors are still trying to figure out how to value it as an asset class.

    Tightening supply on exchanges will make more price volatility in the short term, not less. This effect is temporary however, if you assume that institutional adoption will continue its upward trajectory. That is what will bring a smoothing effect to BTC in the long term, particularly once we have things like Bitcoin ETFs.

  4. But is this actually the balance decreasing or a return to the norm after a spike on exchanges. The graph shown here looks like a less than 15% pull back from a massive spike.

  5. Look at 2013 and 2017 same thing we are not at the bottom yet next bull run will be 2024 or 2025 and be even bigger same cycle over and over but it gets bigger and longer each cycle.

  6. The way the vertical axis is presented here kind of exaggerates the magnitude of the drawdown. Yes, declining exchange balance is bullish. But you’re looking at a 15% drop from peak to current. That’s not a harbinger of any kind of severe shortage.

  7. Halving happens every 210k blocks, it won’t happen again for about a 1.5 years. Bitcoin is new, is not even close to meeting it’s potential. People complain when it drops a couple grand, but pay no mind to it going up 10k in a matter of weeks.

  8. We haven’t escaped the 4 year cycle yet. Hold and accumulate before the next run up. The volatility will end once institutional money and regulation come to the space. Keep a longterm mindset, keep DCA’ing to the top projects and we’ll reap the benefits of being early adopters…get them Lambos bois

  9. No worries, I heard there is talk of creating a fractional reserve system and they will increase the total money supply and everybody will just get more, they can spend more, just like a Utopia. That will make the price skyrocket and everybody will be happy. Oh so happy. I can’t wait. It will almost be like heaven…forever.

What do you think?

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