175,000 BTC leave exchanges – highest level since the corona crash

There is extreme fear at the crypto-mark – but there are some indications that it will soon revert to greed again. The market update.

After yesterday’s Flash Crash, the worst seems to be over – at least for the Bitcoin exchange rate. At press time, BTC is trading at $ 40,276, over 33 percent above the $ 30,000 low that BTC hit yesterday afternoon. A look at the trading volume suggests that numerous investors bought the $ 30,000 dip. With the regained US $ 40,000 mark, there are some indications that Bitcoin has overcome the bear market for the time being.

The data from the blockchain analysis platform Glassnode also suggest that investors have switched back to HODL mode. After that, the BTC reserves of the Bitcoin exchanges were relieved by a whopping 175,000 BTC on May 19 – the highest value since the Corona crash.

Bitcoin miner more willing to sell again

Nevertheless, it would be too early to give the all-clear. Because as you can see from the data from Glassnode competitor CryptoQuant, the Bitcoin miners currently tend to sell. The Miners Position Index (MPI) describes the ratio of BTC leaving the miner’s wallets to the one-year moving average. Values ​​above 2 indicate that most miners are selling. At the time of going to press, the value was 0.2. Coupled with the recent drop in the bitcoin hash rate, the rise in the MPI could mean that a growing number of miners have taken their devices offline and sold bitcoin.

Because most of the miners work in China, a further increase in the MPI cannot be ruled out in view of the tightening of Chinese crypto regulations. On the other hand, however, the fact that the hash rate has shown slight signs of recovery since the crash from the all-time high of 171 Ehash / s on May 20, which was only achieved in mid-May. According to data from BitInfoCharts At the time of going to press, the hash rate is around 143 Ehash / s, around 4 percent above the previous day’s level.

Fear still dominates

Against the background of the “bloodbath” at Bitcoin and Co., it is hardly surprising that the Fear and Greed Index still signals “extreme fear” among investors.

Such fear last prevailed during the corona-related market turmoil in March 2020.

Numerous factors are taken into account when calculating the index, with volatility and market dynamics being the most important at 25 percent each. The “extreme fear” that the Fear and Greed Index is currently displaying could be a buy signal for some investors. To paraphrase Warren Buffet: “Be fearful when others are greedy and be greedy when others are fearful. ” You can find out which course targets the technical analysis spits out for the Bitcoin course here.