Crypto News

Bitcoin Faces Volatility Amid Rising Transaction Activity And Key Developments

As Bitcoin hovers just above $66,000, notable activity is observed in the transfer of unique tokens between wallets.

Recently, 244,000 BTC were circulated in a single day, marking the highest level since March 5th. This uptick in Bitcoin activity suggests a gradual return of utility to levels last seen during the Q1 bull run.

The increase in Bitcoin outflow could signal potential price movements, hinting at a possible breakout from the current fluctuation zone. On the hourly chart, the TD Sequential indicator previously signaled a correction before Bitcoin’s drop from $70,000 to $65,500.

Currently, it is presenting a buy signal, which might indicate a potential rebound if Bitcoin can maintain an hourly close above $66,300. This development could catch many BTC bears off guard.

Volatily Expected In The Crypto Market In The Next Few Hours

Volatility is expected to rise as Bitcoin approaches the FOMC meeting and the Federal Reserve’s rate decision. Notably, if Bitcoin reaches $70,420, approximately $302 million worth of liquidations could occur.

In recent movements, whale address “12QVsf” withdrew another 1,300 BTC ($85.6 million) from Binance within the past 45 minutes, adding to a total of 5,800 BTC ($388 million) withdrawn over the last two days at an average price of $66,968.

Additionally, Mt. Gox addresses transferred 33,960 BTC (worth $2.25 billion) to what may be BitGo, a custodian working with the Mt. Gox Trust Trustee to return funds to creditors. Following these transfers, Mt. Gox now holds 46,160 BTC (valued at $3.06 billion).

On July 30, Bitcoin spot ETFs saw a net outflow of $18.3 million, the first outflow after four days of net inflows. Grayscale’s GBTC experienced a single-day outflow of $73.6 million, while BlackRock’s IBIT saw an inflow of $74.9 million. The total net asset value of Bitcoin spot ETFs now stands at $58.5 billion.

Overall, these developments highlight Bitcoin’s volatile environment and the significant shifts occurring within the crypto space.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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