Over $33 billion worth of Bitcoin enters exchanges marking the biggest weekly inflow in a year
Since May 2022, the cryptocurrency market has seen a significant downward movement, with prices plunging due to increased pressure from sellers when the Federal Reserve announced and began raising interest rates.
When holdings of Bitcoin (BTC) are moved from cold wallets to spot markets, this is often seen as an indication of an intention to sell; often the supply will end up being higher than the demand, which can lead to a sharp price drop.
Notably, 1.69 million Bitcoin (currently equivalent to $33.5 billion) were moved to crypto exchanges from September 7 to 13, the highest amount of BTC moved since October 2021, according to data from the behavioral analysis platform Santiment.
Interestingly, this influx into exchanges over seven days is the most significant weekly increase in the last 11 months. Although the merger date has finally arrived, some market watchers expect a steep drop in the price of Bitcoin.
Bitcoin falls after CPI data
Following the higher-than-expected US core CPI number, a significant surge in currency inflows resulted in a 10% price drop for Bitcoin in hours. The vast majority of bitcoin transactions took place from the spot exchange (Coinbase) to the derivatives exchange (Huobi), and the bulk of the transactions came from an address that was 3-6 months old, according to CryptoQuant data.
Most recently, there has been a large increase in the market’s selling pressure, corresponding to an increase in the Exchange Whale Ratio (EMA 7).
Crypto Market Analyst BaroVirtual noted On September 14, miner transfers to spot exchanges are off the charts.
“The current value of miner transfers to spot exchanges (hourly) is 10.4537 as of 14 Sep ’22 at 1:00 p.m., higher than recent peaks in miner transfer activity. Stable values above 10 were last recorded in July-August before the local fall of BTC. “
“In general, the massive transfers of miners to spot exchanges are usually associated with subsequent pressure, that is, miners sell out, and the price of BTC falls.”
Despite the influx of BTC into exchanges, Finbold reported on September 16 that the number of small Bitcoin holders had reached an all-time high as investors on the sidelines bought the valley. In fact, the number of Bitcoin addresses with at least 0.01 BTC hit a new all-time high of 10,702,698.
The market is likely waiting for a possible bottom, and recent data indicates that buying appetite is waning, which is consistent with the overall market sentiment.
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