Bitcoin retreats after hitting record high due to profit-taking
data from the London Stock Exchange Group shows that after Bitcoin hit a historical high in the previous trading day, there was a decline due to profit-taking by traders. James Madden, Director of Trading at Deus X Pay, stated in a report that the previous rise in Bitcoin was driven by institutional demand, macroeconomic positives, and seasonal momentum. In the week ending October 3, the inflow of funds into Bitcoin spot exchange-traded funds reached $3.2 billion. He further pointed out that macroeconomic support factors include market expectations that the Federal Reserve will further cut interest rates; and against the backdrop of the U.S. government shutdown, the correlation between Bitcoin and gold prices is increasing. In addition, historical data shows that Bitcoin often shows an upward trend in October.
Exchange BTC balances have plummeted over the past few weeks and are now at their lowest level in six years.
Bitcoin broke through $125,700 on Sunday, hitting a new all-time high. At the same time, the balance of Bitcoin on centralized exchanges has dropped to a multi-year low. According to Glassnode data, the exchange balance is only about 2.83 million coins, the lowest in six years; CryptoQuant statistics are even lower, at 2.45 million coins, hitting a seven-year low. Both platforms show that BTC exchange balances have sharply decreased in the past few weeks, with Glassnode pointing out that over 114,000 BTC (about $14 billion) have flowed out of exchanges in the past two weeks. Analysts believe that the shift of funds to self-custody and institutional accounts shows increased confidence in holding assets, and the tightening supply may become a driving force for the continued upward trend in prices.