Bitcoin's Exchange Inflow Surge: Potential Selloff Risk

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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.

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