Share this article
Will Bitcoin Crash? Not Below $48K, Blockchain Data Suggests
Blockchain data might give traders comfort that prices aren't likely to revisit the end-of-2020 level anytime soon.
By Muyao Shen
Updated Sep 14, 2021, 12:24 p.m. Published Mar 10, 2021, 6:30 p.m.
Make us preferred on Google
Bitcoin has often traded like a risky asset over the past few weeks – selling off along with U.S. stocks as bond yields rose, typically in response to nagging worries the Federal Reserve might step in to tighten monetary policy sooner than previously signaled.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
But a new analysis of data extracted from the Bitcoin blockchain suggests the risk of a steep sell-off might be capped on the downside by buyers who appear to enter the market whenever prices fall to about $48,000.
There are no signs that such a sell-off is brewing, with bitcoin's price rising Wednesday for a sixth straight day to a two-week high around $57,000. But the new analysis, by the South Korean blockchain-tracking firm CryptoQuant, might give traders comfort that prices aren't likely to revisit the end-of-2020 level of around $29,000 anytime soon.
“Speculative guess, but institutions would buy more if the price is falling," Ki Young Ju, CryptoQuant's CEO, told CoinDesk,
According to CryptoQuant, dips in bitcoin prices to about $48,000 over the past month coincided with unusually large withdrawals from wallet addresses linked to the cryptocurrency exchange Coinbase's Coinbase Pro segment:
Those outflows “might be institutional deals through Coinbase's over-the-counter (OTC) service or Coinbase prime,” Ki said. The implication is that the institutional investors might be moving their bitcoins off Coinbase Pro into so-called "cold wallets," typically because they have little intention of selling anytime soon.
So far, $48,000 appears to be an attractive purchase price. Based on a price of $56,000, investors are sitting on returns of roughly 16%.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Crypto ETFs with staking can supercharge returns but they may not be for everyone
From yield potential to custody risks, here’s how direct ETH and staking funds compare for different investor goals.
What to know:
- Investors can now choose between owning ether directly or buying shares in a staking ETF that earns rewards on their behalf.
- While staking ETFs offers yield, they come with risks and less control than holding ETH in an exchange or wallet.
- Grayscale’s Ethereum staking ETF recently paid $0.083178 per share, yielding $3.16 in rewards on a $1,000 investment.
Top Stories
