Exchanges Experience Large Inflows
Analyst Ali reveals that centralized exchanges have recently experienced significant Bitcoin inflows, with the “balance on exchanges” indicator showing a substantial rise. This suggests a net deposit of coins on these platforms, indicating a potential selloff by investors transferring their BTC from self-custodial wallets to exchanges.
Signs of Market Behavior
The increase in the balance on exchanges points towards selling pressure, potentially contributing to the recent slowdown in Bitcoin’s price. However, a decline in this indicator would indicate investors withdrawing their coins to self-custodial wallets for long-term holding, which could be bullish for the market.
Increased Selling Pressure and Impact on Whales
The latest data shows that exchanges have received around 34,000 BTC in deposits over the past month, equivalent to approximately $1.2 billion. Despite this significant influx, the total balance on exchanges remains over 2.5 million BTC. Additionally, the number of addresses owned by large entities holding at least 1,000 BTC has declined, indicating increased selling by whales.
Bitcoin Price and Market Decline
Bitcoin’s price has seen a decline in recent days, hovering around $36,000 as the market reflects increased selling pressure and inflows to centralized exchanges.
Hot Take: Market Analysis
Despite recent inflows to centralized exchanges and increased selling pressure from whales, Bitcoin’s long-term prospects remain uncertain as investors continue to monitor market behavior and price movements closely.
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