On-chain data shows that crypto exchange Gemini observed around 10,000 BTC in inflows yesterday as Bitcoin’s price fell below $30,000.
Bitcoin exchange inflows increase when BTC price falls
As one analyst pointed out in a CryptoQuant post, selling on exchanges like Gemini, Binance, and Huobi appears to have been behind the crypto price’s recent drop.
“Exchange Inflow” is an indicator that measures the total amount of Bitcoin flowing into the wallets of all exchanges.
When the value of this metric increases, it means that the exchanges are receiving a large amount of coins at the moment.
Such a trend can be bearish for the coin’s value, as investors typically deposit their cryptos on exchanges for sale purposes.
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On the other hand, low inflow values can indicate that there is a healthy amount of selling in the market. Depending on the value of the outflows (the opposite indicator), this type of trend can turn out to be either neutral or bullish for the BTC price.
Now here is a chart showing the trend of bitcoin exchange inflows over the past few weeks:
It looks like Gemini saw the strongest inflows yesterday | Source: CryptoQuant
As you can see in the chart above, Bitcoin exchange inflow surged to high levels yesterday as the crypto’s price fell below $30,000.
On the chart, the quant has also included data for individual crypto exchanges Binance, Huobi, and Gemini contributors to total inflows.
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It looks like both Binance and Huobi saw around 1,000-1.2,000 BTC in inflows yesterday, while Gemini saw a huge surge of more than 10,000 BTC.
This would indicate that Gemini has seen the strongest bitcoin selling in the last 24 hours of any exchange.
BTC price
At the time of writing, the price of Bitcoin is hovering around $29.7k, up 5% over the past seven days. Over the past month, the crypto has lost 23% in value.
The chart below shows the evolution of the coin’s price over the last five days.
It looks like the value of the crypto has gone down in the last twenty-four hours | Source: BTCUSD on TradingView
Bitcoin appeared to regain a foothold above $31,000 for the first time in almost a month over the past few days, but yesterday the price plummeted again.
At the moment, it is unclear if the sell-off is over or if the crypto will see another drop in the short-term.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
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