Bitcoin erased all its gains following Grayscale’s victory over the SEC. Proceeding from this fact, many thousands of BTC were sent to crypto exchanges mainly by investors seeking to cash in on the positive news as many expected a favorable outcome.
Interestingly, the inflow of BTC into exchanges is showing no signs of slowing down.
no relief
According to Glassnode Alert, bitcoin’s “exchange net flow” (1D MA) metric just hit a 1-month high of $9.75 million, breaking the previous milestone of $8.89 million seen on August 1.
#bitcoin $BTC Exchange Net Flow (1D MA) just reached a 1-month high of $9,756,459.33
The previous 1 month high of $8,892,579.21 was seen on Aug 01, 2023
View metrics: pic.twitter.com/sVD4NmorIn
— Glassnode Alerts (@glassnodealerts) 1 September 2023
In terms of BTC sent to exchanges, Glassnode reports that the amount has reached close to 370 BTC, a 4-month high.
#bitcoin $BTC Exchange Net Flow (1D MA) just reached a 4 month high of 369.461 BTC
The previous 4 month high of 355.407 BTC was seen on 28 Jul 2023
View metrics: pic.twitter.com/yxHGYeG3uH
— Glassnode Alerts (@glassnodealerts) 1 September 2023
The metric measures the overall flow of bitcoins into and out of centralized exchange wallets, and its value is determined by subtracting outflows from inflows. A high positive figure signifies a growing reserve. For the spot exchange, a significant net inflow indicates increasing selling pressure.
Another factor that has fueled bearish sentiment among investors is the U.S. Securities and Exchange Commission’s move to postpone ETF decisions that were originally anticipated for Friday, leading traders to brace for a continued rally in the market. Possibilities are getting overshadowed.
As previously reported, bitcoin fell more than $2,000 from its intraweek high of $28,000, erasing all Grayscale-induced gains.
Bitcoin velocity hits multi-year low
Bitcoin momentum has hit a three-year low – a level not seen since August 2020. Data from CryptoQuant shows that the figure is currently at 23.80 and has still not reached the all-time low of 19.80.
According to CryptoQuant’s Ki Young Joo, there are two ways to look at this situation. “This can be viewed as a positive because whales are taking possession of it, or as a negative because it is not being transferred to new investors.”
Furthermore, the Average Inactivity metric has increased, which essentially means that investors who have held BTC for a long time are willing to sell the coin to make a profit.
It is also worth noting that despite a sharp drop in velocity during the 2023 rally, ‘dormancy’ remained at higher levels. Although the price is currently below its 2021 all-time high (ATH), it is clear that long-term BTC holders are taking advantage of the rally and “changing hands.”
“With market psychology weakening, turnover rates falling, and old hands changing hands, a strong uptrend appears to be somewhat difficult to see at the moment.”
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source: cryptopotato.com
