- Compared to other countries, BTC deposits on US exchanges have increased.
- BTC has hit $38,000, indicating that there is a prospect of reaching $40,000 before the end of 2023.
Changpeng Zhao (CZ) steps up down from Binance’s leadership may not be bad for Bitcoin [BTC] based on the movement of a metric.
When CZ resigned, many market participants expected it BTC pRice takes a violent nosedive. Although the coin fell below $36,000, it recovered within a short period of time.
Unknown to many, this incident could be pivotal in Bitcoin’s pursuit of more upside potential. This conclusion was due to the ratio of foreign exchange reserves between the United States and foreign countries.
This on-chain metric tells us that Relationship between the number of Bitcoins lying on US exchanges and on foreign exchanges.
Not every finish is bad
When the exchange reserve ratio between the US and foreign countries increases, it means that the number of Bitcoin deposits on exchanges increases compared to the other party. If the metric decreases, it indicates something else.
On November 21st the value was -0.46. However, according to AMBCrypto’s analysis of CryptoQuant data, it had risen to -0.44 at press time.
Source: CryptoQuant
In past cycles, Bitcoin supply on U.S. exchanges rose before a bull run. When the bull market begins, the supply on these exchanges decreases. So history is likely to repeat itself.
Crypto Sunmoon, a Korean on-chain analyst and author of Crypto Quant, also backed this up by saying:
“If the recent regulations on CZ and Binance result in an increase in the percentage of Bitcoin held on US exchanges, we will be ready for the next bull market.”
Before the metric’s rise, there was speculation that the US government was keen to reduce Binance dominance in the country. Therefore, it is perhaps not surprising that deposits on exchanges based in the country have increased.
Targeting $40,000
Furthermore, BTC already showed signs that it could be ready for a recovery when its price surpassed $38,000 on November 24th. The increasing Market share of the US stock exchanges was also confirmed by the Korean Premium Index.
The Korean Premium Index shows the gap between Korean exchanges and other exchanges. At press time, the metric was falling, including fewer deposits from retail investors.
Source: CryptoQuant
If the index If the price had risen, it would have meant that there was strong buying pressure from Asia. But this was not the case. Currently, BTC open interest is increasing.
Open Interest shows the amount associated with the open futures contracts in the market.
When open interest is low, it means traders are closing their positions. But if it increases As it stands at the time of writing, this suggests an increase in open contracts.
Source: Coinglass
To read Bitcoins [BTC] Price prediction 2023-2024
As far as price action is concerned, the increasing open interest alongside the increasing value suggests that BTC has the potential for another one rally.
In fact, some traders are targeting a $40,000 milestone for the coin before the end of the year.
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