[Bitcoin Now] Is the Bottom Forming?... Investor Sentiment Still 'Frozen'

Decrease in Miner Withdrawals and Exchange Deposits
Typically Sharp Increase During Sudden Price Drops

60% of Investors Say "Will Reach $10,000" in Future $10,000 vs $30,000 Question

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Indicators that had predicted a sharp drop in Bitcoin prices following the Luna Classic incident are gradually moving in the opposite direction. The amount of Bitcoin withdrawals from miners and deposits transferred to cryptocurrency exchanges are both showing a declining trend. When miner withdrawals or exchange deposits decrease, selling pressure is reduced, lowering the possibility of further price declines.

According to data from cryptocurrency data firm CryptoQuant on the 12th, the total Bitcoin withdrawals by miners the previous day amounted to 1,316. Withdrawals have been on a downward trend since recording 2,295 on the 7th of this month and 1,982 the following day.

Typically, when Bitcoin prices fall, miner withdrawals increase. On the 22nd of last month, when Bitcoin prices were in the $19,000 range, withdrawals rose to as high as 6,730. Additionally, from the 11th to the 16th of last month, amid concerns over an economic recession, Bitcoin prices dropped from the $30,000 range to the $20,000 range, leading to consecutive increases in withdrawals.

This is because profitability worsens compared to mining costs, increasing selling pressure. However, since the 7th of this month, the average Bitcoin mining cost has decreased to a level below the Bitcoin price. According to MacroMicro, a global economic data analysis platform, on the 7th, the average Bitcoin mining cost was approximately $4,858 lower than the price, and on the 8th to 10th, it was $3,712, $1,810, and $3,609 lower, respectively. After a reversal occurred on May 15, the average cost was about $9,794 higher than the Bitcoin price on the 17th of last month.

The amount of Bitcoin deposits transferred from personal cryptocurrency wallets to exchanges is also showing a declining trend. When the amount of Bitcoin deposited into exchanges increases, the likelihood of selling rises, which can lead to further price drops.

On the 14th of last month, Bitcoin deposits to exchanges were recorded at 213,719, but this decreased to 49,097 the previous day. Each time Bitcoin prices plunged sharply, deposit volumes surged significantly. For example, on May 9, when Bitcoin prices dropped by about $4,000 in a single day due to the Luna Classic incident, and on the 13th of last month, deposit volumes increased by 3.3 times and 3.8 times, respectively.

However, despite these indicators, investor sentiment remains subdued. Bloomberg reported that between the 5th and 8th (local time), 950 individual and institutional investors were asked, "Which price will Bitcoin reach first: $10,000 or $30,000?" About 60% of respondents chose $10,000. Opinions on cryptocurrency were divided; approximately 28% of respondents said cryptocurrency is the future of finance, while 20% said it has no value.

Meanwhile, according to the global cryptocurrency market tracking site CoinMarketCap, as of 10:58 a.m. that day, Bitcoin was priced at $19,882 (approximately 26.09 million KRW), down 3.52% from the previous day. Bitcoin prices declined following a drop in the U.S. Nasdaq index, which tends to move in tandem. On the 11th (local time), the Nasdaq index, focused on technology stocks, closed down 262.71 points (2.26%) at 11,372.60 amid heightened caution ahead of the earnings season.

This content was produced with the assistance of AI translation services.