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Bitcoin falls amid build up of BTC on exchanges

Bitcoin in recession global market crisis stock red price drop arrow down chart fall, Money losing moving economic inflation deflation investment loss crash, 3d rendering
A surge in bitcoin inflow onto exchanges could point to the possibility of more sell-offs. Photo: Getty (KanawatTH via Getty Images)

Bitcoin (BTC-USD) has fallen below the $30,000 mark, decreasing by 2% to $28,028 (£22,478).

The global cryptocurrency market cap stands at $1.21tn, down 1.4%, according to Coingecko.

A surge in inflow onto exchanges could point to the possibility of more sell-offs.

Over 7,000 bitcoin have been sent to crypto exchanges in the past two days, building on a steady increase since April in bitcoin exchange reserves, according to data from CryptoQuant.

Read more: Crypto live prices

Bitcoin reserves on all exchanges have been rising since 4 April, possibly indicating higher sell pressure.

Despite the retreat from $30,000, Joshua Frank, co-founder and CEO of The Tie, believes there are still positive market indicators for bitcoin.

He noted that bitcoin's market cap dominance in relation to other digital assets is surging, but liquidity remains a challenge.

He added that the digital asset is outperforming due to factors such as market consolidation, low trading volume, and banking uncertainty.

He told Coindesk: "I think a lot of institutions are excited about bitcoin. I think that the risk-off narrative is resonating right now. Just like it did in 2021.

"Bitcoin is outperforming due to several reasons, including market consolidation, low trading volume, and banking uncertainty.

Read more: Philip Hammond warns of 'real risk' to London financial services from EU crypto bill

"In the short term, bitcoin is more correlated to gold. However, the US regulatory environment is unenthusiastic and negative towards crypto, contributing to low liquidity.”

UK fintech survey forecasts bitcoin price for the end of 2023

A recent Finder study polled 32 fintech and crypto experts for their end-of-year price predictions for bitcoin.

The majority forecast a positive performance, with bitcoin rising in 2023 to an average peak of $35,459, with some forecasting it could surpass $50,000.

They also predicted that bitcoin could reach $99,781 by 2025 and $297,848 by 2030.

Watch: 'Bitcoin will eat into global finance until it's $1m per coin' | The Crypto Mile

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