As the Bitcoin (BTC) price receded, inflows to the stock market rose to the highest levels of the last three and a half years. Individual investors may be on the verge of a big sale.
On-chain analytics platform CryptoQuant in your dataOn June 14, users of 21 major exchanges that collectively sent cryptocurrencies to their wallets were discussed.
Major exchanges consumed 83,000 BTC in a single day
When the BTC/USD pair dropped to $20,800, panic broke out among investors, and few believe the worst-case scenario is over, despite the reversal exceeding $23,000 at one point.
Since then, spot price action has bounced back to $21,000, while entries have reached 59,376 BTC in 24 hours.
According to CryptoQuant data, this is the largest daily entry since November 30, 2018. At that time, 83,481 BTC net inflows were recorded on the exchanges.
As of May 9, 2022, 29,082 BTC net inflows were recorded on platforms tracked by CryptoQuant.
Therefore, concerns have turned to the direction that more selling pressure will emerge in the Bitcoin markets in the coming days and weeks. About a month after its 2018 entry, the BTC/USD pair crashed to the cyclical low of $3,100, 84 percent below the previous all-time high of $20,000.
Table of Bitcoin entries to exchanges. Source: CryptoQuant
As Cointelegraph reported, analysts differ on whether Bitcoin will repeat the trend in this cycle. A 84 percent drop means a bottom of $11,000.
In a different analysis of price, statistician Willy Woo concluded that macro market movements will determine Bitcoin’s bottom.
Discussing various price support theories, the Twitter post said, “I think it’s simpler than that. We’ll find a bottom when macro markets stabilize.” said.
FTX and Binance see heavy selling
Analyzing who has sold so far, CryptoQuant CEO Ki Young Ju turned his finger to derivatives investors and Binance, the largest global exchange.
Related: Has Bitcoin price found critical support? — Analysts undecided
on June 13 shared “This selling pressure came from Binance and FTX exchanges,” he wrote in his Twitter thread.
BTC’s CDD (Coin Days Destroyed) data entering the exchanges points to old whale deposits. The introductory CDD data on the Binance exchange hit a one-year high before the price drop.
Bitcoin CDD data on Binance and FTX exchanges. Source: Ki Young Ju/ Twitter
He evaluated this as the action of whales, who remained relatively quiet during the price fluctuation that started with the Terra (LUNA) disaster in May.
Meanwhile, data from on-chain analytics resource Coinglass shows the extent of the downward pressure on the FTX exchange, especially in recent days.
Bitcoin funding rates for Binance and FTX. Source: Coinglass
The views and comments expressed here are solely those of the author. It may not reflect the views of Cointelegraph. Every investment and trading involves risk. You should do your own research when making a decision.