Bitcoin slipped below $40,000 Wednesday, but signs that point to renewed long-term demand supported sentiment on the popular crypto following its recent rout. Barely a Ripple as Gold Returns to $1,900, Then Drops Back
P:$ 38, 423.4
A:$ 38,996.0 +572.6 +1.49%
BTC/USD to rose 2.02% to $38,682, but had traded as high as $40,750 on the day.
Traders are starting to move their coins off exchanges to private wallets to hold bitcoin for the long haul once again, according to data earlier this week from on-chain analytics firm Glassnode.
The net transfer volume from and to exchanges – a measure that measures the ratio of BTC moved on versus off exchanges – turned negative earlier this week, indicating that more traders were moving bitcoin from exchanges to store, or ‘hodl’ BTC in private wallets, a sign of renewed appetite for long-term demand.
This measure had been positive – indicating more coins moving to rather from exchanges – since the rout began.
Barely a Ripple as Gold Returns to $1,900, Then Drops Back
A = $1,912.89 +16.2
P = $1,896.82 +2.56%
Wednesday’s performance quickly deflated that optimism, with gold longs barely trying to push the envelope despite the relative tame performance of key rivals such as the Treasury yield, the Dollar Index and Bitcoin.
“Gold is also underperforming against periods of high inflation, which fuels our conviction for upside risks in the yellow metal, as much as the Fed sticks to their FAIT framework,” TD Securities said, referring to the Flexible Average Inflation Targeting that moderates the traditional 2% inflation target of the U.S. central bank.
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