Chart of the Day
Flipping Out. Crypto exchanges’ BTC reserves are currently being depleted as the market sees yet another week of sideways price movement, having fallen back under the $34,000 mark. The 14-day moving average indicates that approximately 2,000 BTC are being moved out of exchanges daily. With volatility declining to a low not seen since April 2021, traders are less pressured to make transactions out of panic or hype in the bull market. This data point may also reflect traders’ satisfaction at BTC’s current pricing, with no plans to liquidate their holdings on exchanges in the short term.
Talk of the Town
Caught in a Catch-22. El Salvador’s initial announcement hailing Bitcoin as its legal tender in the future invigorated many in the crypto community. But it’s no cause for celebration yet, says JP Morgan analysts, who point out that remittances in the U.S. Dollar largely dominant. Its over reliance on the world’s hegemonic fiat currency, citizen resistance to Bitcoin and lack of technological infrastructure to take on digital assets on a large scale remain major obstacles to its vision. The country certainly has its work cut out for it.
If you like this topic, then you might want to check out
Bybit Insights: El Salvador to Adopt BTC as Legal Tender: Boon or Bane?