- wBTC saw a few 2,000 transfers for the first time in over a month.
- The inflow dominated bitcoin flow as the price remained bearish.
The wrapped version of Bitcoin [wBTC] recently experienced a significant increase. This move raised questions about whether holders were redeeming their BTCs and whether this had an impact on the BTC trend.
Read Bitcoins [BTC] Price prediction 2023-24
wBTC transaction volume increases
On July 1, packaged wBTC transaction volume surged above 7,000, marking the second such spike in over two months. However, the most notable activity on the day related to the top token transactions per Santiment.
There were two significant moves of 2,000 wBTC each that reduced the supply of wBTC on exchanges. Notably, this whale transaction was the first in over a month.
Source: Santiment
As of this writing, the transaction volume was over 3,000 and the supply of wBTC on the exchanges was around 3.4%. It is important to understand that Wrapped Bitcoin (wBTC) is a tokenized version of Bitcoin [BTC] running on a different blockchain network, typically the Ethereum blockchain. Its purpose is to provide BTC liquidity and functionality for decentralized applications (dApps) and smart contracts on the Ethereum platform.
When wrapping bitcoin, a certain amount is deposited with a trusted custodian or third party. Once the BTC is deposited, a corresponding amount of wBTC is minted and issued to the user. Each wBTC token is designed to maintain 1:1 pegging with the underlying BTC, ensuring it is backed by the same amount of BTC in reserve. This mechanism allows wBTC to represent and track the value of Bitcoin while being usable in the Ethereum ecosystem.
Track Bitcoin flow trend
According to data from CryptoQuant, BTC, while not particularly significant, has seen positive exchange flow over the past few days. As of this writing, the exchange stream saw a major inflow, with over 1,200 BTC entering exchanges.
This observation suggested that more BTC was deposited into exchanges than withdrawn from them during this period.
Source: CryptoQuant
– How much are 1.10.100 wBTCs worth today?
BTC remains trapped in the downtrend
After a modest 1% price gain in the previous trading session on the daily timeframe, Bitcoin resumed its decline. At the time of writing, the price of BTC is around $29,500, down almost 1%.
Additionally, the Relative Strength Index (RSI) suggests that Bitcoin was still in a downtrend as it failed to break out of this downtrend.
Source: TradingView
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