On Tuesday, August 18, the total cryptocurrency market capitalization rose to $393 billion. The last time such a level was observed was on May 16, 2018 at the start of the “crypto winter”.
Together with the growth in capitalization, the bitcoin dominance index fell to 57.7% – the lowest value since June 2019. A similar figure for Ethereum rose to 12.3%, although at the beginning of the year it was about 7%.
However, analysts believe that bitcoin investors are still bullish. The CoinDesk publication draws attention to the decrease in the exchange reserves of the first cryptocurrency to a 21-month low.
“The decline in the balance of bitcoins on the spot exchanges indicates that investors intend to hold the asset. I consider this to be quite a bullish signal, ”said Simon Peters, an analyst at eToro.
Losing confidence in an asset, investors tend to send cryptocurrencies to exchanges in order to be able to sell them quickly. For example, in the days leading up to the March market crash, Bitcoin exchange balances surged 2% to a high of 2,947,555 BTC.
Since then, the price has climbed 200%, updating a new 2020 record on Monday 17 August. At the moment, the quotes rose close to $12,500, and the number of coins on the exchanges decreased by 11%.
At the time of writing, Bitcoin is trading at levels just above $12,000.