Bitcoin Exchange Inflows Spike Up Following Rally Above $24k
As pointed out by a CryptoQuant , the BTC whales with between 1k to 10k BTC seem to have sent a large stack to exchanges recently.The “exchange inflow” is an indicator that measures the total amount of Bitcoin being transferred to wallets of all centralized exchanges (both spot and derivatives).
The value of the metric seems to have spiked up recently | Source:As you can see in the above graph, the Bitcoin all exchanges inflows have registered large values during the last couple of days. The latest spike has come shortly after the BTC price surged above $24k. The chart actually shows a modified version of the indicator, called the “exchange inflow – spent output value bands,” which tells us what contribution to the total inflows is coming from each of the different sized holders in the market.
It looks like the investors holding 1k to 10k BTC had an especially large movement to exchanges in the last two days. Holders belonging to this group are the whales, so the current trend can suggest whales may be planning to dump right now.
However, as mentioned earlier, the indicator takes into account inflows for both spot and derivatives exchanges. A large part of the latest inflows went to the derivatives exchanges, which implies whales may have been hedging against their spot positions. Nonetheless, a sizeable part of the total inflows did go to spot exchanges, so some selling may still be going on in the market from these whales.BTC Price
At the time of writing, Bitcoin’s price floats around $23.8k, up 2% in the past week.
Looks like the value of the crypto has come down during the past day | Source:
Featured image from Thomas Bonometti on Unsplash.com, charts from TradingView.com, CryptoQuant.com