Bitcoin and other Altcoins are now recovering from the recent collapse in the crypto market. This suggests that everything went as planned, and the massive sell-off was not something that was unexpected.
In fact, the correction has long been expected in the market, but some investors still panicked and closed their short positions. Meanwhile, some retained theirs or even added more into the market.
And yesterday, about 175,000 BTC were withdrawn from various crypto exchanges, which is the largest amount recorded since the start of the pandemic. On the evening of May 19 alone, more than 37,000 coins left the crypto exchanges. Several leading cryptocurrency analysts have released reports stating that many investment funds were actively buying bitcoin immediately after the price dropped below $ 35,000. BTC data from public companies also speaks of this.
As of January 3, 2021, the amount of accumulated BTC was at the level of 1,151,618. Then, on March 3, the number increased to 1,350,118. And on May 20, it increased to 1,647,586. Obviously, this means that the Bitcoin rally is not going to end soon, and that the corrections were necessary for further bullish impulses.
For example, during the recent decline, leading crypto exchanges received a record volume of Stablecoins - around $ 5.28 billion. This suggests that many investors returned to the market and bought cheaper crypto assets while speculators recorded losses and fled from it.
The Bank of America also said that Bitcoin's popularity is very high these days, citing the results of its recent poll. According to the data, 194 fund managers (with a total AUM of $ 592 billion) said that long positions on Bitcoin are the largest transaction in the world
In short, BTC transactions are currently the busiest, not to mention accounts for about 27% of the total volume.
However, the recent market crash did disrupt the operations of crypto exchanges. Binance, for instance, temporarily disabled Ethereum withdrawals, citing network congestion. Meanwhile, Coinbase Global reported "intermittent downtime" on its platform, but later said they already identified and fixed the issue. Interruptions were also observed on Kraken.
Many users also complained that they could not purchase other digital tokens such as Dogecoin, Ripple and Shiba Inu Coins.
In any case, digital tokens are now recovering, which increases their attractiveness to the eyes of investors. Leading crypto platforms also did not have problems with the loss of assets or withdrawals, which may not be good news.
The material has been provided by InstaForex Company - www.instaforex.com