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November 25, 2020

OnChain Reaction

Why there is a lot of demand for bitcoin with Chainalysis


Philip Gradwell
Chief Economist at Chainalysis Inc.

Philip Gradwell, chief economist at Chainalysis, discussed what’s been happening on the blockchain in the last week.

  • (27:54) “The bitcoin price has continued to rise and it’s now approaching its longer-term levels, nearly reaching its 100 and 200-day average. So it appears there is a lot of demand for bitcoin.”
  • (28:12) “It looks like the supply is meeting that demand, with bitcoin flows into exchanges also returning to their longer term levels…Interestingly, flows into exchanges are above their 200-day average. So actually we’re seeing greater inflows to exchanges while we’re also seeing prices that we’ve seen in the 200-day range. That suggests that there is robust demand keeping the prices up even as there’s an increase in supply.”
  • (29:27) “Flows between exchanges have increased significantly in the last week relative to the last 30 days. And there’s been a USD 221 million cash out from crypto to crypto exchanges and derivative exchanges to crypto to fiat exchanges.”
  • (31:29) “Looking at Tether, the buying power remains, with Tether continuing to enter exchanges at elevated rates.”
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Gerelyn Terzo
Gerelyn caught wind of bitcoin in mid-2017 and after learning about the peer-to-peer nature of Satoshi's creation has never looked back. Previously she covered institutional investing and fintech for several major trade publications. Gerelyn resides in Verona, N.J.

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