Traders have sent more Bitcoin to exchanges than at any time since the crash in March 2020, but Bitcoin has performed “very well”.
Data from the on-chain monitoring resources CryptoQuant and Glassnode show that on May 13, the inflow of Bitcoin exchanges hit a new high in a year.
Nearly 30,000 BTC flowed into the exchange
This week, sellers put tremendous pressure on Bitcoin due to multiple news that triggered multiple bearishes.
Tesla abandoning Bitcoin payments, followed by rumors that US regulators have launched an investigation into the main exchange Binance, which is enough to bring BTC/USD to a low of 46,000 U.S. dollars before stabilizing.
As reported by Cointelegraph, the decline is likely to be much more severe, and longer-term price characteristics provide support at key levels.
Nevertheless, as of the time of writing, Bitcoin is still unable to touch $50,000, and holders are licking their wounds to assess the next possible trend of Bitcoin.
The data tracking the behavior of traders reveals the scale of the sell-off and also shows that Bitcoin actually weathered the storm quite well.
On Thursday, the amount of funds flowing into the exchange reached 30,000 BTC (1.47 billion U.S. dollars), and when the price fluctuated the most, the total liquidation amount reached 200 million U.S. dollars in just 10 minutes.
Analyst William Clemente concluded this Friday: “Yesterday was the day with the largest inflow of Bitcoin exchanges since the crash in March last year.”
“Considering this and the $200 million liquidation in 10 minutes, Bitcoin performed very well.”
The money flowing into the exchange reflects the desire of investors to sell Bitcoin in a short period of time. Some people may not cash out their Bitcoin holdings, but hold a stablecoin position and then buy again after the Bitcoin price stabilizes. Therefore, as panicked investors join the ranks of “buying on dips,” exchange capital outflows may soon begin to increase.
However, CryptoQuant CEO Ki Young Ju continued his analysis, emphasizing that whales are still sending bitcoins to exchanges more than usual, which may be a potential signal that the downtrend has not ended forever.
He told Twitter fans: “If you are a derivatives trader, be cautious in the short term, (relatively speaking) the whale is depositing bitcoin on the exchange,”.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.