Bitcoin cannot recover with stocks as $940 million crypto is withdrawn from the exchange

Crypto industry players who are optimistic about Bitcoin point to several reasons why they think the digital currency will rise, including rising inflation and increased institutional investor participation. But an uncertain regulatory environment continues to prove to be a headwind for bitcoin.

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About 48,000 bitcoins were moved on Tuesday coin base Pro., a preferred exchange among institutional investors, according to data provider CryptoQuant.

The breakout was the biggest among crypto exchanges and the second biggest drop of all time since crypto’s big crash in June of this year. The stock market exits show that investors are withdrawing their crypto from exchanges and switching from sell mode to accumulation mode.

According to Maarten Regterschot, a contributing analyst at CryptoQuant, the value of the crypto moved on Tuesday was about $940 million and the transactions were partially split into lots of 122 bitcoins, a familiar pattern that has come to fruition several times in the 2021 bull run.

He also said that the transactions were most likely made at over-the-counter trading desks and therefore may not affect the bitcoin price.

bitcoin It was trading at $19,407.02 on Tuesday, down 0.4%. Ether It was down 1% to $1,308.55. Both have been steadily trading sideways for about a month.

Meanwhile, while bitcoin’s correlation with equities dropped from an all-time high last month, it remains at historic highs and its price is still largely driven by key economic data reports and macro triggers like central bank policy. However, its unusually low volatility has been a hit for the crypto market in recent days.

“Bitcoin has not been able to make a significant move since the beginning of June as prices bounced off an increasingly narrow range,” said Clara Medalie, Kaiko’s director of research. “Given Bitcoin’s current low price levels, trading volumes have remained relatively resilient since last year’s all-time highs. Despite increasingly low volatility, there has been no noticeable drop in volumes since September.”

Elsewhere, major stock indexes were making solid moves Tuesday morning. Crypto stocks were mostly green except for the “crypto bank”. silver doorAccording to FactSet, its earnings came in weaker than expected on Tuesday due to the recent lack of interest in crypto.

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