Is Bitcoin’s Rise Exit Pump? Why Did BTC Inflows Increase in Exchanges? Glassnode Commented!

After the CFTC’s lawsuit against Binance, it fell to $ 26,500. bitcoinrose strongly to $28,600 levels today.

While this rise gets investors excited again, cryptocurrency analysis platform glassnode warned investors in its weekly Bitcoin and cryptocurrency report.

Pointing to the increase in Bitcoin inflows on crypto currency exchanges in its recent report “The Price of Time”, Glassnode said that this week, approximately 4.18 thousand BTC He said he had an entrance.

This week’s BTC entries as of May 2022 LUNA Comparing it to the collapse of Glassnode, “Bitcoin inflows this week were the biggest net increase since LUNA crashed in May 2022.” said.

Adding that this is an indication that investors are realizing their profits, Glassnode made the following statements in its report:

“In response to the strong price increase in recent weeks, investors have increased the volume of coins invested in exchanges.

Net currency flows rose to around 4.18k BTC this week.

This shows that investors are realizing their profits.

All previous examples with larger net inflows have brought with them major market volatility events, often to the downside.”

At this point, Glassnode BTC He stated that the entries could be a near-term retracement signal in the market.

However, opening a parenthesis to the subject, Glassnode stated that although there is a possibility of a pullback, the current profit rates have not yet reached the levels recorded at the end of a bull market, so this data alone cannot be interpreted as a bearish signal for Bitcoin.

“We note that the size of realized profits still remains well below typical bull market levels.”

Finally, Glassnode stated that the majority of BTC still does not appear to be active on-chain, stating that this shows that investors continue to trust the dominant uptrend in the market.

In response to the strong price appreciation over recent weeks, net exchange flows have ticked higher by approximately 4.18k BTC this week, the largest net increase since LUNA collapsed in May 2022.

Read more in the latest Week-on-Chain 👇https://t.co/gr0R5tekCF pic.twitter.com/UHdv24JQC9

— glassnode (@glassnode) March 28, 2023

In addition to Glassnode, the increase in BTC inflows here should not be evaluated only in terms of sales. Whales expecting a drop in Bitcoin dominance can also use these BTCs to buy altcoins. Considering that Ethereum has an update in April, we may see greener days for altcoins in the coming days.

*Not investment advice.

If you are wondering about the effect of the Binance case on the market, you can review the news below.