The number of addresses sending BTC to exchanges has doubled from January to now, they reveal glassnode data. There are now roughly 100,000 unique addresses sending BTC to exchanges on a daily basis, which is a notable increase after the large outflow of funds from exchanges earlier in the year.
This may be due to a growing interest in BTC as more uncertainty about the future of the US dollar continues to accumulate. Recent reports indicate that the inflation rate of the US dollar is increasing steadily and is expected to worsen as the US Federal Reserve continues to print dollar bills indiscriminately.
This compromises the coin as a reserve currency and investors are looking for a better reserve currency and Bitcoin seems to be assuming that status lately.
What does this mean
The huge increase in the number of unique addresses sending Bitcoin to exchanges is not a new trend. It is not one that has been witnessed recently though, as according to Glassnode, the last time such a surge was experienced was at the peak of the bull market of 2017, followed by a sharp drop in the price of Bitcoin.
As trends in the cryptocurrency market generally repeat themselves, the current increase in the number of addresses sending bitcoin to exchanges may be suggesting that a similar pattern is about to unfold. Could it be that Bitcoin is about to crash like it did in January 2018?
The month of September is historically unfriendly to Bitcoin, which may explain why its price has been fluctuating just above $ 10,000. It has even dropped below the psychological level of $ 10,000 during the fight with the bears a few weeks ago. Although it has approached $ 11,000, it has dropped below $ 10,500 and is currently hovering around $ 10,300.
The bitcoin market is expected to improve in October, as September generally does not favor the digital asset. But if the 2017 pattern unfolds, does that mean that Bitcoin will slide further down?