While it’s easy to connect a regulatory statement or pending legislation to the price movement, it usually does not give a complete picture.
In the cryptocurrency industry, it’s very difficult to time or guess the price of, say, a Bitcoin.
This exodus of coins indicates that Bitcoin has been transferred from short-term speculators to longer-term holders who are taking the coins out of exchanges.
Sometimes, a muted search volume can also indicate that institutional investors could be behind a rally and the retailers could join once the price has peaked.
Most of the companies investing in cryptocurrency are public and so their actions can be easily tracked.
As the active supply decreases, Bitcoin holders lean towards hoarding their coins, which further reduces the availability of the coin to be sold.
Also, when El Salvador faced hiccups in rolling out Bitcoin as a legal tender last month, its price briefly came under pressure.