Bitcoin Exchange Inflows Hit Three-Month High As Market Braces For More Downside
10 May 2022 - 09:00AM
NEWSBTC
Bitcoin exchange inflows have been on the rise recently. Although
there was a period where it had tapered off, it had continued to
rise once more. The culmination of this has been a massive inflow
into various centralized exchanges, presumably for investors to
sell off their coins. Now the inflows have hit a new three-month
high, painting a rather grim picture for the future of the digital
asset. Inflows Take Over Bitcoin investors have been dumping their
holdings since the digital asset started its descent from its
$69,000 all-time high. Although outflows had rivaled inflows, the
rate at which BTC was flowing into exchanges remained a cause for
alarm. In a chart posted by Glasnode Alerts, it shows how
inflows have been moving in relation to price. Following the
historical pattern of inflows increasing when the price is down,
the market had seen more and more bitcoins moved onto exchanges for
sale. Related Reading | APE Takes A Beating As It Sheds
50% Of Its Price The exchange inflow volume on a 7-day moving
average touched a three-month high of 1,729.605 BTC flowing into
exchanges. This inflow had ramped up after bitcoin had lost its
footing above $36,000, a critical support level. 📈 #Bitcoin $BTC
Exchange Inflow Volume (7d MA) just reached a 3-month high of
1,755.021 BTC Previous 3-month high of 1,729.605 BTC was observed
on 08 May 2022 View metric:https://t.co/1S6EbDkdOO
pic.twitter.com/8kSJPOLJXW — glassnode alerts (@glassnodealerts)
May 9, 2022 Whales Exiting Bitcoin Usually, when exchange inflows
get this high, it signals that whales are getting out of the
digital asset. This is no surprise given the low sentiment that has
plagued the market in recent times. Going by the charts, if this
does descend into another full-blown bear market, then investors
could be dealing with low prices for another year. Naturally,
whales who have a large stake in the market are trying to exit in
order to avoid more losses. This is backed by the bitcoin’s
relative unrealized profit hitting a new 18-month low of 0.462.
This means that investors are taking a profit. Coupled with the
number of bitcoin addresses in profit reaching a new 18-month low,
it is no surprise that more holders are cashing out their gains.
BTC price slips to $33,000 | Source: BTCUSD on TradingView.com
Interestingly though, small investors seem to be doubling down on
their holdings. The number of addresses holding 0.01 BTC on their
balances had touched a new all-time high on May 8th. This number
now sits at 9,977,201 bitcoin addresses holding more than 0.01 BTC
on their balances. Related Reading | Bitcoin Carnage
Continues As BTC Disintegrates To $34K Daily transactions have also
held up in the space. Data shows that it continues to trend at a
daily average with 233,892 transactions recorded on May 8th. This
came out to a dollar figure of about $30 billion which has been the
average since the beginning of the year. Nevertheless, the
declining price of bitcoin continues to strike fear in the hearts
of investors. At the time of this writing, BTC is dangerously close
to falling into the $32,000 territory with a trading price of
$33,100. Featured image from The Indian Express, chart from
TradingView.com
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