11 October 2024
Bitcoin is currently hovering above a key support level, and any minor selloff triggered by a group of traders could potentially snowball into a wave of intense selling pressure. This fragile situation is underscored by data from the on-chain analytics firm Santiment, which revealed that over 30,000 BTC, valued at approximately $1.83 billion, has been transferred to crypto exchanges within a short period. Undoubtedly, such a huge amount of BTC entering crypto exchanges is problematic, especially in terms of a bullish outlook for the cryptocurrency.
30,000 BTC Sold In 72 Hours
According to Santiment data highlighted by crypto analyst Ali Martinez, Bitcoin addresses holding between 1,000 BTC and 10,000 BTC have sold or redistributed around 30,000 BTC in the past 72 hours. Considering the current average price of Bitcoin, this comes out to about $1.83 billion worth of BTC exchanging hands.
#Bitcoin whales have sold or redistributed around 30,000 $BTC in the past 72 hours, totaling $1.83 billion! pic.twitter.com/y9FsARYrmM
— Ali (@ali_charts) October 10, 2024
Exchange inflow data from IntoTheBlock, which tracks the activities of various holder cohorts, reveals that on October 8 alone, around 18,220 BTC was moved to exchanges. This was followed by an additional 16,000 BTC on October 9 and roughly 13,800 BTC on October 10.
While not all inflows lead to immediate selloffs, high volumes of BTC entering exchanges often suggest that investors are positioning themselves for potential sales. This continued exchange inflow could signal a buildup of selling pressure, with market participants potentially preparing to liquidate their holdings in the near future.
Bitcoin Under Increased Selling Pressure?
On a positive note, the current selloffs are largely being driven by short-term holders, which has led to a shift in Bitcoin ownership. Many of the BTC being sold are being scooped up by long-term holders, who view the dip as an opportunity to strengthen their positions. This shift in ownership could stabilize the market, as long-term holders are typically less likely to sell going forward.
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Moreover, exchange inflow data shows a gradual decline in the amount of BTC being sent to exchanges each day. This trend indicates that fewer investors are moving their Bitcoin into exchange wallets, which could be a sign that the recent wave of selloffs is losing momentum.
In terms of exchange reserve, data from CryptoQuant shows a steady decline in the amount of BTC held on wallets controlled by crypto exchanges since the beginning of October. This decline in exchange reserves contradicts the fears of continued selloffs, as it implies there is less Bitcoin available for sale on exchanges. If this trend continues, it could further reduce the selling pressure and provide a more optimistic outlook for Bitcoin’s near-term recovery.
At the time of writing, Bitcoin is trading at $60,854, establishing a price floor of around $60,000.