• Bitcoin (BTC) is looking to recover from the latest downtrend that has seen it decline by over 7% in four days.
• Binance had to suspend a cluster of BTC withdrawals on its platform due to higher fees on the chain.
• Data suggests that the number of BTC withdrawals from exchanges has dropped to a one-month low, as bitcoin seeks to recoup losses incurred in the past four days.
Bitcoin Looks To Stage Recovery
Bitcoin (BTC) is attempting a recovery after facing a downtrend which caused it to drop by more than 7% over the course of four days. The cause of this downturn was an influx of transactions and BRC-20 tokens on Bitcoin’s network, leading to higher fees and congestion across the web. As a result, Binance had to pause BTC withdrawals due to high fees.
Exchange Withdrawals Declining
Data from CryptoQuant’s BTC Exchange Netflow indicator shows that since May 2nd, net flows have been mostly negative with only two positive days out of six total. This resulted in -38,865 BTC net flows since May 2nd. Additionally, Glassnode data suggests that there has been a one-month low for the number of BTC withdrawals from exchanges at 2,260.161 tokens.
Bitcoin Attempts Recovery
In light of these declining numbers, Bitcoin is trying to regain what was lost in recent days by increasing its price from $27,849 but facing resistance along the way. At present, it is trading around $27,587 with a small 0.07% increase over 24 hours. For Bitcoin to continue its recovery process successfully it must surge above $27k-$28k range with ease and stability.
PayPal’s Crypto Holdings Rise
PayPal recently reported an increase in their crypto holdings by 56%, resulting in holdings worth $943 million as per their Q1 2023 figures.
Overall it appears that while there are still mixed signals regarding Bitcoin’s future performance, exchange withdrawal numbers appear promising for now as they show signs of decline compared to previous weeks which could signify recovery for Bitcoin prices ahead as well as increased trust in cryptocurrency investments among larger corporations like PayPal who are making large crypto purchases themselves recently..