Cryptocurrency
Bitcoin Market Weakening After Macro-Based Sell-Off, On-Chain Data Suggests
CoinDesk reports,”Key bitcoin (BTC) on-chain metrics have flipped bearish this week, suggesting the top cryptocurrency by market cap may extend its recent price losses in the short term. On Tuesday, the net inflow of bitcoin to exchanges (measured by the total change in exchange balances) was 36,800 BTC – the biggest single-day rise since the […]
By Chris Sykora · September 23, 2020
CoinDesk reports,”Key bitcoin (BTC) on-chain metrics have flipped bearish this week, suggesting the top cryptocurrency by market cap may extend its recent price losses in the short term.
- On Tuesday, the net inflow of bitcoin to exchanges (measured by the total change in exchange balances) was 36,800 BTC – the biggest single-day rise since the markets crash on March 13, according to data source Chainalysis.
- ‘Since Sept. 20, the net daily inflow of bitcoins to exchanges have been increasing and trade intensity has been declining,’ Philip Gradwell, an economist at Chainalysis, told CoinDesk.
- This, he said, ‘indicates a weakening market.’
- The uptick in net inflows represents an increase in selling pressure, since investors typically move coins from their wallets to exchanges when they see a possible need to liquidate their holdings.
- Further, bitcoin’s trade intensity, which measures the number of times an inflowing coin is traded, fell to a one-year low of 1.75 on Tuesday.
- That’s a sign there were not enough buyers to absorb the spiking inflow of coins…”