Analytical company Glassnode reported that recently there has been a downward trend in the volume of BTC in the wallets of cryptovoltaic exchanges. This may hint at a decrease in volatility.
The peak of BTC volume on wallets of crypt currency exchanges was recorded in mid-January and has been gradually declining since then. The trend increased in February, although a large amount of funds was transferred to exchanges during the market decline on March 12-13. Since then, even less BTC has remained on the purses of exchanges.
Also, analysts said that most of 2020, funds from exchange purses were gradually withdrawn. Positive inflow of BTC was recorded only at the beginning of the year, in early February, and during the market decline on March 12-13. However, after the crisis the outflow of funds increased significantly.
These data probably show that market participants do not expect big movements in the price of Bitcoin and withdraw funds in order to store them in a place more reliable than exchange wallets. Thus, a period of consolidation is expected in the market in the near future.
Kaiko data also show that the situation on the cryptovoltaic market is returning to normal. This is indicated by both spreads on cryptovoltaic exchanges and trading volumes. Both parameters increased significantly in the period of March 12-13, but then returned to average values.
In addition, it was recently reported that popular cryptocurrency exchanges have recorded an influx of new users. This is associated with the isolation of people due to coronavirus.
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