On-chain data shows that investors have sent large amounts of Bitcoin to exchanges recently. As these BTCs are transferred for probable sale, it is interpreted as a signal of a price drop.
The amount of Bitcoin sent to exchanges suddenly increased
This rate suddenly peaked after the 9% inflation report. As CryptoQuant points out in their latest analysis, large amounts of BTC have been piling up on exchanges lately. According to analysts:
“All exchanges net flow” is an indicator that measures the net amount of Bitcoin entering or leaving the wallets of all central exchanges as a whole. The value of the metric is calculated simply by taking the difference between the inputs and outputs.
What do these metrics mean?
When the value of the net flow is positive, it means that a net number of BTC is currently being moved to these wallets. This trend threatens BTC to the downside, as investors often deposit their cryptocurrencies on exchanges for sale purposes.
On the other hand, the negative value of the indicator indicates that investors are currently withdrawing their coins. Such a trend, when prolonged, signals accumulation. Therefore, the metrics are also interpreted as bullish for Bitcoin. Now, here is a chart showing the trend in Bitcoin all-exchange netflow over the past week:
As you can see in the chart above, the flow of Bitcoin to exchanges has seen a positive increase over the past 24 hours. Shortly before this latest spike, there was another spike. But this other increase was offset by a similarly large negative value of the metric. The amount in the post states that entries on crypto exchange Gemini (which is still known to be used by whales) contribute to this positive net flow value.
Bitcoin flowing to stock markets peaks after 9% inflation report
These deposits arrived a few days after the monthly CPI report was released, revealing that inflation rose 9% in June. If the entries are indeed from whales looking to sell their coins, the near-term outlook is bullish for most analysts.
Bitcoin price analysis
cryptocoin.comAs you follow, BTC price has been trading above $21,000 for the last 24 hours. It is trading around $21,400, fluctuating 2% over the last 24 hours and 7 days. The chart below shows the spike that Bitcoin has recorded in the past few hours. Meanwhile, this move led to a slight shift in mood, as Fear and Greed closed their longest periods of time in a state of “extreme fear.”
Meanwhile, an analyst at CryptoQuant, who monitors miner behavior, has raised the alarm about a potential sale. Binh Dang says that on July 15, miner wallets transferred 14,000 BTC.
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