Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

‘Net neutral’ — The Huobi Chinese user block could be to blame for rising Bitcoin exchange balances

Bitcoin
The Huobi Chinese User Block Could Be To Blame For Rising Bitcoin Exchange Balances/courtesy The Huobi Chinese User Block Could Be To Blame For Rising Bitcoin Exchange Balances/courtesy
Bitcoin
The Huobi Chinese User Block Could Be To Blame For Rising Bitcoin Exchange Balances/courtesy The Huobi Chinese User Block Could Be To Blame For Rising Bitcoin Exchange Balances/courtesy

Although Binance is seeing Bitcoin inflows, new data shows that overall, movements among major exchanges appear to cancel each other out.

According to new research, rising Bitcoin (BTC) balances on exchanges may not be a sign of investors preparing to sell.

TXMC, a Glassnode on-chain analyst, revealed the latest data from across exchanges on Dec. 28 and blamed fresh changes in China for rising balances elsewhere.

Orphaned Huobi users are “absorbed” by Binance

As a rangebound BTC price combines with increased inflows to exchanges, nerves are fraying at the end of December.

Binance has been particularly closely watched as its BTC stocks have risen, a classic indicator that traders are at least arming themselves to de-risk in the event of further price weakness.

At the same time, as a result of China’s ongoing crackdown on cryptocurrency trading, Chinese investors are being locked out of international spot trading venues.

On December 15, Huobi Global, the international arm of Chinese exchange Huobi, barred mainland Chinese citizens from using its trading platform. They now have until the end of the month to sell funds, after which they will have a one- to a two-year window to withdraw them from their accounts.

“Mainland China users will no longer be able to sell their holdings or conduct any transactions involving CNY beginning at 16:00 (UTC) on December 31, 2021,” according to a blog post published on the day of the closure.

“The system will automatically cancel all pending sell orders if users have not yet withdrawn sell orders before the cessation.” The withdrawal function will be available for 1 to 2 years, with notice given before it is shut down. Users in mainland China should take care of their digital assets as soon as possible.”

As a result, the increase in Binance’s balance could simply be the result of those users moving tokens to other platforms.

been making waves recently as their exchange balance has increased. TXMC commented on a chart supporting the theory, “My theory is they’re absorbing users from Huobi and elsewhere as China shuts down some exchanges at EOY.”

“Intriguingly, the exchange balances of Binance and Huobi are sideways. “It’s net neutral.”

Read more on:

Liquidity problems

Concerns about a sell-off have grown as a result of lower volumes and shallower markets during the holiday season, according to Cointelegraph.

With major institutional players only returning next week, the lack of liquidity could exacerbate any sudden moves.

However, there are still nuances as retail investors continue to build BTC portfolios, while larger investors appear to be less confident.

According to the analysis, a retail-fueled mass sell-off event is also unlikely to happen in the future.


Comment Template

You May Also Like

Business

Analysts believe a recent crash in foreign equity markets is more due to investors winding down carry trades than a shift in the U.S....

Finance

Here are a few million-dollar rare coins for coin collectors and individuals with small riches. Flowing Hair Silver Dollar, 1794. This rare 1794–1795 coin...

Technology

  The iPhone maker introduced the Siri revamp and other new features at its annual developers show on Monday. A new customized AI system...

Technology

During a San Francisco event on Thursday, Republican presidential candidate Donald Trump positioned himself as a cryptocurrency champion while slamming Democrats’ attempts to regulate...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok