On-chain data shows crypto exchange Gemini observed around 10k BTC in inflows yesterday as Bitcoin’s price declined below $30k.
Bitcoin Exchange Inflows Rise as BTC Prices Fall
As pointed out by an analyst in a CryptoQuant post, selling on exchanges like Gemini, Binance, and Huobi looks to have been behind the latest drop in the crypto’s price.
The “exchange inflow” is an indicator that measures the total amount of Bitcoin moving into wallets of all exchanges.
This metric is worth a lot more than it seems, so exchanges receive a lot of coins.
Investors often deposit crypto on exchanges to make it more valuable.
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Low inflows can indicate that there is a lot of buying going on. This type of trend, depending on its opposite indicator (the value of outflows), can be neutral or bullish to the BTC price.
Below is a chart that illustrates the recent trend in Bitcoin exchange transactions over the past few weeks.
Gemini seems to have seen the most inflows yesterday. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the Bitcoin exchange inflow surged yesterday, as the cryptocurrency’s price fell below $30k.
To calculate the total inflows, the chart includes the data from each of the cryptocurrency exchanges Binance or Huobi.
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Binance and Huobi both saw inflows of around 1k-1.2k BTC yesterday. Gemini, however, witnessed a massive spike of over 10k BTC.
According to this, Gemini was the most active exchange in Bitcoin trading over the past 24 hours.
BTC Prices
At the time of writing, Bitcoin’s price floats around $29.7k, up 5% in the last seven days. In the past month, crypto lost 23%.
The chart below shows how the currency’s price has changed over the course of five days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Bitcoin seemed to have gained some ground over $31k in the past few days, but the price crashed yesterday.
At the moment, it’s unclear whether the selloff is over, or if the crypto will experience further decline in the near term.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts