Bitcoin Is Being Sent to Crypto Exchanges Less Frequently Despite Price Rally: Report

Libra Coin News
Thu, 09/05/2019 - 14:04
Alex Dovbnya
Retail investors are not jumping on the Bitcoin bandwagon this time around
Cover image via

Bitcoin has been on a tear in 2019 with its price peaking at $13,700 back in June. However, its stellar price rally doesn’t reflect the number of addresses sending BTC to cryptocurrency exchanges, which has been declining since 2017.

Analyst Predicts When Bitcoin Price Will Hit $100,000 Based on Power-Law Growth Model

Retail investors are sleeping on Bitcoin

According to a recent study by London-based Blockchain startup TokenAnalyst, the trading volumes of Bitfinex, Binance, and other major cryptocurrencies fall short of matching the 2017 numbers.

TokenAnalyst Sid Shekhar attributes this lukewarm trading activity to the lack of retail interest in crypto. This flies in the face of those who believe that Bitcoin has already established itself as a safe haven asset

If we go by the ‘Bitcoin as safe haven in times of recession’ narrative, the number of new users/buyers should actually be increasing.

Earlier, Fundstrat’s Tom Lee predicted that Bitcoin crossing the $10,000 would trigger the highest level of FOMO, but it looks like the retail sector is yet to get hooked on crypto in 2019 even in the five-digit reality.

John Bollinger Warns Crypto Traders About Major Bitcoin Price Move

Meanwhile, institutions are stepping in

While cryptocurrency exchanges are struggling to bring back the days of their former glory, institution-oriented trading platforms are reaching new highs. As reported by U.Today, the Chicago Mercantile Exchange (CME) has witnessed a whopping 132 percent in the number of Bitcoin futures contracts compared to 2019.

VanEck and SolidX are expected to launch a limited version of a Bitcoin ETF for institutional investors. On top of that, ICE-baked exchange Bakkt will roll its Bitcoin futures by the end of September. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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