Binance observes massive influx of 10k BTC


Bitcoin on-chain data shows that crypto exchange Binance observed a large inflow of nearly 10k BTC yesterday.

Bitcoin Netflow Shows Huge Positive Spike As 10k BTC Enters Binance

As noted by an analyst in a CryptoQuant afterBTC net flow had a large positive spike yesterday, a sign that is mostly bearish for the price.

The “all exchanges netflow” is an indicator that measures the net amount of Bitcoin entering or leaving the wallets of all exchanges. The value of the metric is simply calculated by taking the difference between the inflow and the outflow.

When the indicator has positive values, it means that there is currently more inflow than outflow. Such a trend is often bearish, as investors usually deposit their Bitcoin for selling purposes.

On the other hand, when the value of the metric is negative, it means that the outflow is an overwhelming inflow as a net amount of BTC leaves the exchanges. Trends like this can be bullish for the price of the crypto as holders generally withdraw their coins to hold them.

Related literature | Bitcoin Leverage: Lack of Liquidations May Point to New Wave of Selling

Here is a chart showing the trend in Bitcoin net flow over the past few months:

It looks like the stat’s value recently spiked a huge positive | Source: CryptoQuant

As you can see in the chart above, Bitcoin net flow yesterday showed nearly 10k BTC entering the exchanges within an hour yesterday.

A look at the chain data reveals that this influx went to Binance. Interestingly, just a few hours later, crypto exchange Gemini observed an outflow of about 10k BTC, wiped out this inflow and turned the grid back to neutral.

The negative peak makes up for the positive one a few hours earlier | Source: CryptoQuant

As mentioned before, the inflow is usually bearish for the price of Bitcoin. But since an outflow of the same amount occurred just a few hours later, the net flow effectively became neutral.

Related literature | Anthony Scaramucci Urges Bitcoin Holders to Think Long-Term as Downtrend Won’t Last

Now outflows could be bullish for the price if they occurred with an eye to accumulation. But that doesn’t necessarily have to be the case. If the investors behind the pullback plan to sell them through OTC deals, the effect on the price could be bearish instead.

BTC price

At the time of writing, Bitcoin’s price is hovering around $36.8k, down 12% over the past seven days. The chart below shows the trend in the value of the coin over the past five days.

The price of BTC has followed much of the recovery of recent days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradignView.com, CryptoQuant.com

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