Bitcoin Exchanges See Biggest Inflows Since March 2020

September 16, 2022 10:23 pm Comments

So far, it has been recorded that around 236,000 BTC has entered crypto exchanges in a single day which is an unusually large amount of volume.

Based on that amount, it is actually the biggest exchange inflow that has been recorded since March of 2020 which may indicate that the market is anticipating a major change.

The spike in volume has been recorded across 11 major exchanges according to the on-chain analytics firm called Glassnode.

To provide some comparison, back in March 2020, this was when Bitcoin was at its all time low at around $3600 where it experienced the same unusual spike in volume.

CoinTelegraph reports:

On Sept. 14, over 236,000 BTC made its way to the 11 major exchanges tracked by Glassnode.

This was the largest single-day spike since the chaos that surrounded Bitcoin’s dip to just $3,600 in March 2020.

The sell-offs in May 2021 and May and June this year failed to match the tally, suggesting that more of the Bitcoin investor base is currently aiming to reduce exposure.

Separate data from analytics firm Santiment covering both centralized and decentralized exchanges put the total inflow figure for the week through Sept. 13 at 1.69 million BTC.

“This was the highest amount of $BTC moved since October, 2021,” it added in Twitter comments.

Currently, the price of Bitcoin has dipped to around $19,600 where it was able to break the strong support at around $20,000.

Under the $20,000 mark is where the volume started to pickup and Glassnode has also recorded that exchange balances have also increased by around 80,000 BTC since August.

All of these are potential indicators that the market will likely see some major volatility coming.

Coincidentally, there was also a capitulation period for Bitcoin miners which historically only happens before a major move in the market.

FXStreet comments:

Miners who held BTC through the “capitulation” period in August 2022 and were bullish on the asset have started shedding their Bitcoin in recent weeks.

Glassnode analysts argue that Bitcoin has nosedived below its 60-day, 120-day, 200-day, 360-day, and 720-day moving averages.

Every time Bitcoin’s price declines below these moving average levels, it coincides with a “generational buying opportunity.”

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