On-chain data shows crypto exchange Gemini saw an influx of around 10k BTC yesterday as the price of bitcoin fell below $30k.
As BTC Price Drops, Bitcoin Exchange Flows Up
As reported by an analyst in a CryptoQuant post, selling on exchanges such as Gemini, Binance and Huobi is behind the latest drop in the price of crypto.
“Exchange inflow” is an indicator that measures the total amount of bitcoins in the wallets of all exchanges.
When the value of this metric increases, it means that the exchanges are receiving a large amount of coins at the moment.
Such a trend can be bearish for the value of the coin as investors usually deposit their cryptos into exchanges for the purpose of selling.
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On the other hand, lower inflow values may indicate that a good amount of selling is taking place in the market. Depending on the value of the outflow (contrast indicator), such a trend could prove to be neutral or bullish for the price of BTC.
Now, here’s a chart that shows the trend in bitcoin exchange flows over the past few weeks:
It seems like Gemini saw the heaviest amount of inflows yesterday | Source: CryptoQuant
As you can see in the above graph, bitcoin exchange inflows surged to higher values yesterday as the price of the crypto fell below $30k.
In the chart, volume data is also included for individual contributions to total flows from crypto exchanges Binance, Huobi and Gemini.
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It looks like both Binance and Huobi saw an inflow of around 1k to 1.2k BTC yesterday, while Gemini saw a massive increase of over 10k BTC.
This shows that out of all the exchanges, Gemini saw the heaviest bitcoin sales in the past twenty four hours.
At the time of writing, bitcoin price is floating around $29.7k, up 5% over the past seven days. In the past month, the crypto has lost 23% in value.
The chart below shows the coin’s price trend over the past five days.
Looks the value of the crypto has plunged down over the last twenty-four hours | Source: BTCUSD on TradingView
Over the past few days bitcoin has surged above the $31k mark for the first time in almost a month, but yesterday the price dropped again.
At the moment, it is unclear if the sell-off is over, or if the crypto will experience further downside in the short term.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com