Since May 2022, the cryptocurrency market has seen a significant downward movement, with prices falling due to increased pressure from sellers as the Federal Reserve announced a rate hike.
When Bitcoin (BTC) holdings are moved from cold wallets to the spot markets, this is often seen as an indication of selling intent; Supply is often higher than demand, which can lead to a sharp drop in prices.
Notably, 1.69 million bitcoins (currently equivalent to $33.5 billion) were transferred to crypto exchanges from September 7 to 13, the highest amount of BTC transferred since October 2021, according to data From the behavioral analysis platform Santiment.
Interestingly, this seven-day influx of exchanges is the most significant weekly peak of the past 11 months. Although the date of the merger has finally arrived, some market watchers are anticipating a sharp drop in the price of Bitcoin.
Bitcoin Drops After CPI Data
After a higher-than-expected core CPI reading in the US, a surge in currency inflows sent the bitcoin price down 10% in a matter of hours. The vast majority of bitcoin transactions took place from spot exchange (Coinbase) to derivatives exchange (Huobi), with the bulk of transactions coming from an address that was 3-6 months old, according to CryptoQuant data.
Recently, there has been a significant increase in selling pressure in the market, which matches an increase in the whale exchange ratio (EMA 7).
BaroVirtual Crypto Market Analyst pointed On September 14, miners’ transfers to spot exchanges were off the charts.
“The current value of transfers of miners to spot (hourly) exchanges is 10.4537 on September 14 22 at 13:00, which is higher than the recent peak in miner transfer activity. Stable values above 10 were last recorded in July and August before the local fall of BTC.”
“Generally speaking, massive transfers of miners to spot exchanges are usually associated with an afterthought, i.e. miners sell and the price of bitcoin goes down.”
But despite the influx of BTC on exchanges, Coinphony reported on September 16 that the number of small bitcoin holders has reached a record high as marginalized investors bought the dip. In fact, the number of Bitcoin addresses of at least 0.01 BTC reached a new record high of 10,702,698.
The market is likely to wait for a potential bottom and recent data is indicating that buying interest is waning, which is in line with the overall market sentiment.
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Post-Bitcoin income of $33.5 billion on exchanges, the largest weekly influx since October 2021, first appeared on Coinphony.