The month of May was filled with volatility for the Bitcoin market . The coin faced serious challenges as sales increased in the past month. According to the data provider Skew, the liquidation liquidations on BitMEX alone amounted to $ 856 million, out of the total of 1.2 billion liquidations on the platform. However, there were many traders in the market who bought the dips.
This could be inferred from a trend highlighted by research analyst at Decentral Park, Elias Simos. The analyst pointed out that for a few weeks, Bitcoin had been rushing out of trading, while the USDT had stopped "dancing in tandem" and was following the direction of Bitcoin .
Source: Twitter
This indicated that the USDT was being used to buy more BTC by users. However, despite maintaining the amount of BTC in trade, users have preferred to withdraw the BTC exchange and Hodl in their own portfolios. This was confirmed by a merchant on Twitter and founding partner of Bitazu Capital, Mohit Sorout. The trader noted that total foreign exchange reserves were declining and have reached 1.36 million BTC . The last time that stock market reserves were this low was in Q1 2019, after which the bullish rise in BTC has begun.
Source: Twitter
The trader speculated the reason behind this, he noted,
"It could be that the sharp decline in the balance of foreign exchange since Black Thursday is due to the fact that many btc have exchanged hands that day. And the new owners have transferred their over-the- counter BTC to their portfolios. "
As traders and analysts speculate on hodling, the data also suggests an increase in hodling activities. According to data provided by Bitinfocharts, the Bitcoin-rich list for the number of bitcoins held in the 0-0.001 BTC range had increased by 21% in one year.
Source: Bitinfocharts
The number of Bitcoins held by users in the aforementioned range was 2,405 BTC in May 2019, which increased to 2,911 BTC in May 2020, indicating that users increasingly hold the largest digital asset.
Source: Bitinfocharts
This trend may be emerging due to the market's expectation that the price of BTC will rise after the halving and according to market indicators, a bullish wave may just enter the ecosystem. BTC .
Source: Coinstats
At the time of publication, Bitcoin was trading at $ 9,560 with a trading volume of $ 32 billion over 24 hours.
