Bitfinex: The 2020 Pattern Will Repeat Before Bitcoin’s Rally
A noticeable decrease in the inactive supply of the original cryptocurrency, which has been undergoing changes for over a year, indicates that the asset is being withdrawn from exchanges or sold by long-term holders. This was reported in the latest Bitfinex report.
The current activities of Bitcoin investors follow a similar pattern to what was observed in December 2020, just before the sharp increase in the crypto market, noted analysts.
“This pattern suggests that we may be entering a phase of similar growth,” they added.
According to analysts, funding rates have started to recover after recent significant sell-offs triggered by a drop in Bitcoin price. Traders are now paying attention to the upcoming halving.
As stated in the report, the halving of the block reward, which is approaching, is a fundamental driver of price movements and has led to a significant decrease in Bitcoin deposits on centralized exchanges.
