Bitcoin's Exchange Inflow Surge: Potential Selloff Risk

user avatar

by Giorgi Kostiuk

2 years ago


In recent days, there has been a significant increase in bitcoin flows to centralized exchanges, which might indicate a potential selloff.

Rise in Bitcoin Inflows to Centralized Exchanges

According to IntoTheBlock, starting December 1, the net inflow of bitcoin to exchanges surged significantly. The amount of funds increased from a net outflow of $69 million to a net inflow of $326 million. Bitcoin net inflow accounted for $230 million on December 3. Over $562 million in bitcoin entered centralized platforms in total.

Activity of Major Bitcoin Holders

The large holder-to-exchange net flow ratio reached 0.86% on Tuesday, suggesting that whales have been more active than retail holders. The volume of large transactions surged from $38.7 billion to $87.3 billion in bitcoin on Monday, December 2. ITB data shows a total of $169.6 billion in whale transactions over the last seven days.

Analysis shows that large bitcoin transactions have recently increased significantly, indicating potential market changes.

Potential Impact on the Cryptocurrency Market

On-chain data reveals that an 11-year-old whale address with 2,700 BTC, worth over $257 million, transferred its bitcoin holdings to another wallet for the first time since December 2013. This might hint at a selloff due to the substantial returns. The increased exchange inflows could trigger FUD among retail investors, but a spike in whale accumulation might shift market sentiment. The potential U.S. Federal Reserve rate cut in the upcoming meeting could be a major bullish catalyst for Bitcoin and altcoins.

The rise in bitcoin inflows to centralized exchanges and the activity of large holders have the potential to significantly affect the market. Investor sentiment shifts are expected amid potential Federal Reserve rate cuts.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

MEXC Enhances Security Measures and Capital Reserves

MEXC enhances its security framework and capital reserves by adding 1,000 BTC to its Futures Insurance Fund, aiming to protect user assets and provide a risk buffer during extreme market conditions.

user avatarTenzin Dorje

MEXC Unveils AI Trading Report with Key Insights from Crypto Traders

MEXC has released an AI Trading Report based on a survey of 3,708 crypto traders, highlighting the use of AI in trading strategies and user preferences for control and risk management.

user avatarBayarjavkhlan Ganbaatar

BingX EU Achieves MiCA License to Expand Crypto Services in Europe

BingX EU MEGE zweite GmbH has obtained a MiCA license from Austria's FMA, allowing it to offer regulated crypto services across 29 EEA countries.

user avatarMohamed Farouk

Zcash Faces 11% Decline Amid Growing Market Concerns

Zcash has experienced an 11% decline in the past 24 hours, raising concerns about market stability and the impact of AI on cryptography.

user avatarElias Mukuru

HTX Strengthens Global Compliance and Showcases at TOKEN2049

HTX has made significant strides in global compliance initiatives while participating in TOKEN2049, a major event in the crypto industry held in Singapore.

user avatarDiego Alvarez

SEC Files Charges Against Richard Heart for Fraud

The SEC charged Richard Heart and his entities with conducting unregistered offerings of crypto asset securities.

user avatarMaria Fernandez

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.