Bitcoin's Exchange Inflow Surges, Sparking Price Dip Fears

Bitcoin's exchange inflow has reached its highest point in months, raising concerns about a potential continuation of the price dip. The crypto market has been experiencing intense sell pressure and negative sentiments, with a total decline of 8% in market capitalization over the past week. On-chain metrics have also shown a downward trend, indicating a bearish sentiment in the market.

CryptoQuant data reveals bearish Bitcoin metrics on the Binance exchange. The exchange inflow of the top 10 transactions has plummeted to a level not seen in almost a year, suggesting large amounts of asset flows to the centralized exchange. Binance, the largest exchange in terms of trading volume, has seen an increase in Bitcoin reserves, potentially indicating more selling pressure. The Taker Buy/Sell Ratio also reveals that bearish sentiment currently dominates the exchange.

The seven-day moving average for Bitcoin has increased as panic grips traders. Last week, Bitcoin price slipped below $80K, fueling massive retail exit to save as holders look to take profits. Institutional investors also sold assets after the price slipped below the support level. At press time, BTC trades at $85,843, a 3.5% drop in the last 24 hours, extending weeks’ losses above 16%. Despite this sharp fall in Bitcoin prices, mega bulls like CryptoQuant’s CEO have backed a rebound for the asset.

The fall in Bitcoin price sent negative signals to the wider market, lowering signs of an altcoin season. Ethereum fell 6% to trade at $2,177 while weekly outflows exceeded 22%. The altcoin woes have surged in recent weeks after falling below $2,500 amid whale pressures. XRP lost a chunk of gains picked up in December after its price fell to $2.11 before picking up again. The institutional favorite tipped to ignite the altcoin season has faced headwinds sparked by declined volumes. XRP bulls maintain optimism for an upswing when macro factors flip green and appetite soars. Cardano’s weekly exits hit 25% affecting traders’ positions.