Bitcoin’s weekend ascent has run out of steam, even as blockchain data and the weakness of the US dollar indicate the path of least resistance is to the upper side.
The leading cryptocurrency by market value is trading near $ 34,200 at the time of publication, which is a 3% drop on the day, according to data from CoinDesk 20.
The pullback reversed a significant portion of the $ 32,700 to $ 36,000 rebound seen over the past three days. It comes in a context of a drop in the number of coins held on the stock exchange, an upward trend.
The balance held on central exchanges fell to 2.577 million BTC on Sunday, reaching the lowest level since May 16, according to data tracked by Glassnode.
The tally has dropped by over 25,000 BTC in two weeks, meaning less bitcoin is now available for sale compared to the second half of June. Investors typically take direct custody of their bitcoins when they expect prices to rise or aim to generate additional return by symbolizing the cryptocurrency on the Ethereum blockchain.
Plus, that’s not the only sign that wealthy investors are stepping up their bargain hunt. The odds therefore appear to be mounting in favor of the bulls – especially as the dollar is trading weakly in currency markets despite Friday’s bullish US employment data.
Bitcoin has mostly moved in the opposite direction to the dollar index (DXY) since the Federal Reserve surprised markets with its forecast for an anticipated interest rate hike on June 16. .
The DXY, which tracks the value of the greenback against major currencies, is currently at 92.14, down 0.6% from the four-month high of 92.74, according to data from TradingView.
The greenback could suffer a larger drop if the minutes of the June Fed meeting, due for release later this week, downplays the rate hike outlook.
“Considering that the individual forecasts of Federal Reserve officials were not discussed at last month’s FOMC meeting and President Powell downplayed them, it shouldn’t be surprising that the minutes weren’t so warmongers than [interest rate] points, ”said Marc Chandler, chief market strategist at Bannockburn Global Forex, in a blog post on Sunday.