On-chain data shows crypto exchange Gemini observed around 10k BTC in inflows yesterday as Bitcoin’s price declined below $30k.
Bitcoin Exchange Inflows Spike Up As BTC Price Falls Down
As pointed out by an analyst in a CryptoQuant post, selling on exchanges like Gemini, Binance, and Huobi looks to have been behind the latest drop in the crypto’s price.
The “exchange inflow” is an indicator that measures the total amount of Bitcoin moving into wallets of all exchanges.
When the value of this metric surges up, it means exchanges are receiving a high amount of coins at the moment.
Such a trend can be bearish for the value of the coin as investors usually deposit their crypto to exchanges for selling purposes.
Related Reading | Bitcoin Observes Longest Stretch Of Extreme Fear Since April 2020
On the other hand, low values of the inflow can suggest that a healthy amount of selling may be going on in the market. Depending on the value of the outflows (the opposite indicator), this kind of trend can prove to be either neutral or bullish for the price of BTC.
Now, here is a chart that shows the trend in the Bitcoin exchange inflows over the past couple of weeks:
It seems like Gemini saw the heaviest amount of inflows yesterday | Source: CryptoQuant
As you can see in the above graph, the Bitcoin exchange inflow spiked up to high values yesterday as the price of the crypto slipped down below $30k.
In the chart, the quant has also included data for the individual contributions from crypto exchanges Binance, Huobi, and Gemini, to the total inflows.
It looks both Binance and Huobi saw around 1k to 1.2k BTC in inflows yesterday, while Gemini observed a huge spike of more than 10k BTC.
This would suggest that out of all the exchanges, Gemini saw the heaviest Bitcoin selling over the past twenty-four hours.
At the time of writing, Bitcoin’s price floats around $29.7k, up 5% in the last seven days. Over the past month, the crypto has lost 23% in value.
The below chart shows the trend in the price of the coin over the last five days.
Looks the value of the crypto has plunged down over the last twenty-four hours | Source: BTCUSD on TradingView
Bitcoin looked to be gaining some footing over the $31k mark over the last few days for the first time in almost a month, but yesterday the price once again tumbled down.
At the moment, it’s unclear whether the selloff is over, or if the crypto will experience further decline in the near term.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com