The surge in the number of Bitcoin flowing into the central exchange has triggered bearish speculation that the crypto market may be gradually escalating.
Data shared by Lex Moskovoski, CIO of Moskovoski Capital, showed that in one hour on May 18, 22,917 BTC were transferred to the central exchange within one hour.Black thursday“Collision.
22,917 #Bitcoin It was deposited on the exchange yesterday within an hour.
The hourly inflow is only comparable to the March 2020 crash.
People are scared. pic.twitter.com/uH4lBL6Onk
-Lex Moskovski (@mskvsk) May 18 2021
The outflow of funds from the exchange can usually be inferred as Indicates that crypto assets are being transferred to cold storage For security or DeFi protocols used to generate revenue, inflows are interpreted as assets being transferred to a centralized platform for sale.
Data collected by the on-chain encryption analysis company Glassnode shows that in the past two days, the net transfer volume on Bitcoin hit a record high for the second time in a row, and then to the leading central exchange Binance. Twitter analyst William Clemente III shared his data with his 70,400 followers, sparking bearish price predictions on social media.
The biggest day for BTC to flow into Binance. pic.twitter.com/HG56s37mtv
-William Clemente III (@WClementeIII) May 18 2021
The graph shows that in the past 48 hours, approximately 35,000 bitcoins (worth more than $1.4 billion) have been deposited into Binance.
“It feels like surrendering,” Say Dan Held, the growth leader of Kraken. Clement replied: “Let’s look at the last nasty liquidation core.”
Although the price of Bitcoin fell below the local low of $40,000, some analysts are still looking for reasons to be bullish.
Popular analyst Lark Davis pointed out that the recent downturn has allowed Bitcoin’s 14-day relative strength indicator to enter the oversold zone for the first time since March 2020, indicating that the crash may be close to plateauing.
Others welcome surrender, which may be a catalyst for a bullish recovery. prophecy Once the sales are exhausted, it quickly resumes its upward momentum.
Twitter user “YHRW80” pointed out that by 2021, there will be a surge in traffic into the Bitcoin spot and derivatives market. to sum up The dominant emotion to control the market is “greed” rather than fear.
However, the Fear and Greed Index of Bitcoin is different from the analysis of YHRW80. description The current Bitcoin market sentiment is “extreme fear”.
Today there is some welcome news, the Indian media report The Indian government will reconsider its planned encryption ban and set up a new panel of experts to explore the regulation of Indian crypto assets.
Some analysts believe that the catalyst for the surge in capital inflows is the imminent deadline of tomorrow for which the controversial stablecoin issuer Tether is about to announce its quarterly financial records as part of it. Reached a settlement with the New York Attorney General’s Office.
last week, Tether released a breakdown of its reserves For the first time, three-quarters of the assets supporting its stablecoins are cash, cash equivalents, and other short-term deposits and commercial paper.