🕵️Last week's inflow of funds into Bitcoin exchanges reached an astonishing $1 billion. Does this signal an impending market storm?
At the beginning of this week, Bitcoin continued to fluctuate between $98,600 and $95,000, as it did last week. During this volatility, data shows that Bitcoin traders' sentiment is leaning negative, which may exacerbate the downward price trend.
On-chain analysis platform IntoTheBlock shared data on X showing that last week, $1.04 billion flowed into cryptocurrency exchanges, offsetting the outflows of the previous three weeks. This phenomenon indicates a hesitancy in the market due to global political and economic uncertainties.
Even more concerning is that Bitcoin network transaction fees dramatically decreased by 10.74% compared to the previous week. A decline in transaction fees is typically seen as a bearish signal, as rising transaction fees usually indicate increasing demand and market activity, while a decline suggests waning interest and weakening price momentum.
According to Soso Value data, the net outflow of funds from U.S. spot Bitcoin ETFs reached $651.83 million last week. This is the largest single-week outflow these spot Bitcoin ETFs have faced since the first week of September 2024.
Meanwhile, the inflow of funds into Bitcoin exchanges has surged. This phenomenon suggests that while the ETF market is experiencing fund withdrawals, some of the outflow may have shifted to exchanges.
The inflow of Bitcoin into exchanges typically provides a bearish signal for Bitcoin, as it creates selling pressure on the exchanges.
In summary, the analysis suggests that some institutional investors have been selling Bitcoin, either to take profits or as a precautionary measure in response to the uncertainty following the price crash in early February.
Additionally, crypto analyst Ali Martinez claims there is a demand barrier of 1.43 million coins between $94,660 and $97,540, and a supply barrier of 1.16 million coins between $97,650 and $99,470. A breakout above either barrier could signal a significant market shift, with an upward breakout potentially pushing it back above $100,000, while a drop below support could trigger a deeper correction.
💬 The movements in the Bitcoin market have sparked heated discussions. Do you think this is a signal of the end of the bull market? Or is it just a temporary adjustment? Share your insights in the comments and let's discuss together!
