Bitcoin On-chain Data shows that exchanges saw the biggest inflows of bitcoin since July 2021. The crypto’s value has risen to $33k.
Bitcoin Exchange inflows rise to highest value since July 2021
An analyst pointed out in a CryptoQuant article that BTC inflows had seen a dramatic increase in recent months.
The “all exchanges inflow” is an indicator that measures the total amount of Bitcoin moving into exchange wallets.
This metric is worth more, which means that there are more coins being traded on exchanges. As investors often deposit BTC into exchanges, this trend can be down for the cryptocurrency’s value.
Related Reading| TA: Ethereum Bears Aim Big After Recent Breakdown Below $2.5K
However, the low value of this indicator suggests that there is not much trading on the exchanges right now. If this trend continues, it could be bearish on the price of the coin.
Below is a chart that illustrates the change in Bitcoin exchange flows over the last several months.
The value of this metric seems to have risen recently. Source: CryptoQuant| Source: CryptoQuant
You can see that this week’s spike in Bitcoin exchange inflows was evident in the graph.
The indicator currently has the highest value since July 2017, when its price was around $29k.
Terra Beats Tesla As Second-Largest Corporate Bitcoin Holder After $1.5B Purchase| Terra Beats Tesla As Second-Largest Corporate Bitcoin Holder After $1.5B Purchase
It appears that in the past few months, when the amount of inflow has increased, the price also decreased.
It appears that the recent plunge in Bitcoin to below $33k has also been caused by heavy trading on the exchanges.
The metric’s value still looks to be rising, so it’s possible the coin may observe further decline in the near term, until the 7-day MA inflow tops out.
BTC Prices
At the time of writing, Bitcoin’s price floats around $32.9k, down 14% in the last seven days. The crypto’s value has fallen 22% over the last month.
Below is a chart showing the change in coin price over the past five days.
BTC's price seems to be falling over the past few days. Source: BTCUSD at TradingView| Source: BTCUSD on TradingView
Bitcoin’s seemingly endless consolidation looks to have finally broken down as the coin has observed some sharp downtrend in the past week.
At the moment, it’s unclear whether the crypto is nearing a bottom or if more decline is coming. The latter scenario will be more probable if the inflows keep increasing.
Unsplash.com featured image, Charts from TradingView.com and CryptoQuant.com charts