Bitcoin’s Exchange Net Flow Reaches 1-Month and 4-Month Highs
Bitcoin has seen a surge in BTC being sent to exchanges, indicating investors seeking to capitalize on positive news. The Exchange Net Flow metric has reached a 1-month high of $9.75 million, surpassing the previous milestone of $8.89 million. Additionally, the amount of BTC sent to exchanges has reached a 4-month high of 369.461 BTC. These metrics suggest a growing selling pressure and a bearish sentiment among investors.
Bitcoin Velocity Hits Multi-Year Low
Bitcoin velocity has dropped to a three-year low, reaching levels not seen since August 2020. This indicates that BTC is being held by whales rather than being transferred to new investors. The Average Dormancy metric has also risen, suggesting that long-term BTC holders are selling the token to make a profit. Despite the current price being below the all-time high, it appears that long-term holders are taking advantage of the surge.
SEC’s ETF Decision Postponement Adds to Bearish Sentiment
The US Securities and Exchange Commission’s decision to postpone ETF decisions has cast a shadow over traders’ prospects for a sustained market rebound. This, combined with the influx of BTC into exchanges, has fueled a bearish sentiment among investors. Bitcoin slumped by over $2,000 and erased previous gains made after the Grayscale victory over the SEC.
Hot Take
The recent increase in BTC being sent to exchanges and the drop in Bitcoin velocity suggest a bearish sentiment among investors. The postponement of ETF decisions by the SEC has added to this negative outlook. It remains to be seen how these factors will impact the future of Bitcoin and the crypto market in general.
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