The amount of Bitcoin in circulation has continued to diminish since the middle of May. The decrement has renewed hopes that the worst days of massive selloffs are over. Santiment, a crypto analysis firm posted on its Twitter page that the rate of Bitcoin market supply has been very low since the beginning of January. The firm however said that this is the lowest since the past six months and is indicative of the fact that there are no fears of another massive Bitcoin selloff.
The Bitcoin market experienced exponential rise in inflow in the middle of May, this probably catalyzed the massive selloffs recorded within the same period in the month. The massive selloff climaxed on the 19th of May with a record of $1.2 trillion loss in the crypto industry.
Getting information from Bitcoin exchange charts is of prime importance when it comes to careful analysis and monitor of Bitcoin price slope within a limited time frame. Increase in inflow is always the forerunner of enormous selloffs. It is however worthy to note that it was in May that Bitcoin had its greatest inflows since March last year’s COVID-19 pandemic.
Even though Bitcoin has experienced a negative slope in price, this decline has been fixated steadily at an intermediate level. Following this observed trend, many investors are optimistic that the bull market season will soon return. The rate at which Bitcoin is adopted in some American regions and the movement of many mining firms from China to other countries are all sources of hopefulness as many believe that it could never be worse than it is currently. On the other hand, authorities have continued to issue cautionary notices regarding the volatility that could be experienced in short term.
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