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The server of InvestAnswers, closely followed by the world of cryptocurrency and has been operating anonymously for years, has announced that a metric on the blockchain indicates a significant short-term rise in Bitcoin (BTC). Here is the metric highlighted by the analyst.
Bitcoin’s Annual Absorption Rate on Exchanges is Minus 100%
During a new strategy session, the anonymous server of InvestAnswers focused on the annual absorption rate of the largest cryptocurrency, Bitcoin, on crypto exchanges and examined the emission metric provided by the crypto data platform Glassnode. This metric shows the comparison between the rate of change in the balance of wallet addresses on crypto exchanges and the volume of BTC issued during the same period within an annual timeframe.
The crypto data company states about the metric: “This metric theoretically provides a relative measure of the annual absorption rate on crypto exchanges and the newly issued BTC amount. Keep in mind that it is possible to have values above 100% as cryptocurrencies can also be transferred by other investor groups outside of exchanges.”
The analyst examining the current status of this metric stated that it signals a significant increase, saying, “When the absorption rate is negative as you can see on the right, it means that Bitcoins are being withdrawn intensively from crypto exchanges, which is a clear liquidation process. It indicates that more Bitcoins are being withdrawn than being deposited into crypto exchanges. Currently, there is a negative absorption rate, which is generally considered a sign of an upward trend because there is less selling pressure. Investors do not want to sell their BTC in the short term, so they prefer to keep their assets in their own private wallets rather than in wallets provided to them by crypto exchanges. This situation is quite important because the annual Bitcoin absorption rate on exchanges is minus 100%.”
Bitcoin’s Current Situation
According to data presented by CoinMarketCap, Bitcoin is trading just above $30,000, experiencing a 1.04% increase in the past 24 hours, at $30,204. The data shows that Bitcoin has risen by 1.09% in the last 7 days and 12.68% in the last 30 days.
The largest cryptocurrency reached its highest level of the year on July 13th, recording $31,657, and since then, Bitcoin has not shown any significant movement.
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