Recent Bitcoin inflows are on the rise. It had been declining for a time, but it has continued to climb. This culminated in a huge inflow to various central exchanges. This was presumably because investors wanted to sell their coins. The inflows are at a three-month peak, which paints a grim future for digital assets.
Inflows Overtake
Bitcoin investors began selling their bitcoin holdings after the price of $69,000 fell. While outflows have been greater than inflows over the past year, BTC flows into exchanges at a rate that is alarming.
Glasnode Alerts posted a chart that shows the relationship between price and inflows. The historical trend of increasing inflows when prices are down has seen the market see more Bitcoins being sold on exchanges.
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On a daily moving average, the exchange inflow volume reached a record high of 1,729.605 BTC. This was three months ago. After bitcoin lost its ground above $36,000 (a crucial support level), this inflow has increased.
📈 #Bitcoin $BTCThe Exchange Inflow Volume (7.5M) has just reached an all-time high of 1,755.021 BTC in the past three months.
The previous three-month peak of 1,729.605 BTC, was seen on May 20, 2022
View metric:https://t.co/1S6EbDkdOO pic.twitter.com/8kSJPOLJXW
— glassnode alerts (@glassnodealerts) May 9, 2022
Bitcoin is being reclaimed by whales
This is a sign that the exchange market is being flooded with money. Given the recent low market sentiment, this is not surprising. The charts show that investors might be faced with lower prices for another year if the market descends into another bear market.
Whales with large shares in the bitcoin market want to get out of it to reduce their losses. This is backed by the bitcoin’s relative unrealized profit hitting a new 18-month low of 0.462. Investors are making a profit. With the increasing number of bitcoin, this means that investors are making a profit. addresses in profitIt is not surprising that holders have started to cash out more of their gains after the stock market hit a record low 18 months ago.
BTC drops to $33,000| Source: BTCUSD on TradingView.com
However, it is interesting to note that small investors are increasing their holdings by doubling down. This is the The number of addresses holding 0.01 BTC on their balances had touched a new all-time highOn May 8, 2018. Now, this number is 9,977201 bitcoin addresses that have more than 0.01 BTC in their balances.
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The space has also seen a steady increase in daily transactions. The data shows it is trending at a daily average of 233892 transactions as recorded on May 8, 2008. It came to an average of $30 billion, which is the same as the start of the year.
Investors continue to be afraid by the falling price of bitcoin. BTC, at the moment of writing, is in danger of falling to $32,000 with a trade price of $33,100.
Featured Image from The Indian Express chart by TradingView.com