According to CryptoQuant, the amount of Bitcoin deposited into crypto exchanges has hit an annual high. Bitcoin is a comparatively old technology, but it is still the market leader. However, CryptoQuant CEO Ki-Young Ju said the whales, which are still sending more coins to exchanges than usual, are a potential sign that the bearish period is not over for good.
The dominance of BTC in the market
Crypto has done exceptionally well as traders have sent more coins to exchanges than ever since the March 2020 crash. Bitcoin remains the front runner among cryptocurrencies, with 42% of the total market value.
Inflows on exchanges show a desire to sell BTC urgently. Some may not sell for cash from their inventory. Instead, they take a stablecoin position and then buy it back once prices stabilize. Hence, if worried investors join those “buying the dip”, the outflows could soon rise.
The CEO of CryptoQuant stated that if you are a long term $ BTC investor, you should be calm as your portfolio is the same as that of institutional investors in the US.
If you are a derivatives trader, caution should be exercised in the short term as whales deposit $ BTC on exchanges.
Bitcoin whales are stacking up
Inflows to the exchanges hit 30,000 BTC ($ 1.47 billion) Thursday, while liquidations totaled $ 200 million in just a 10-minute period during the height of price volatility.
According to an analyst, William Clement, yesterday was the biggest day of foreign exchange inflows since the crash in March last year.
A few days ago, inflows into cryptocurrency funds and products hit a record $ 4.5 billion in the first quarter. According to Coinshare, this indicated increased institutional involvement in the once scolded sector.
Stop by Tesla Payments
Tesla announced that it would no longer accept the digital asset for payments, followed by rumors that US regulators’ investigation of Binance was enough to push BTC / USD to lows of $ 46,000 before it broke up stabilized.
Elon Musk stated that the reason for the decision is that bitcoin mining is costly to the environment and needs to be more energy efficient.
Prices across the crypto market dropped shortly after Musk’s announcement. Bitcoin was down 19.2% from $ 57,000. At the time of writing, Bitcoin is trading at $ 50,676.
Still, not all Bitcoin whales are selling as CryptoQuant statistics showed 10,044 BTC Leave Coinbase on May 13th. The bitcoin, valued at around $ 0.5 billion, was bought at a starting price of $ 49,000. This purchase suggests that the $ 52,000 to $ 46,000 price zone is another possible area of Bitcoin whale accumulation who are optimists for further spike.
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