Bitcoin has observed a plunge to the $59,000 level during the past day. Here’s what could be behind it, according to on-chain data.
Bitcoin Exchange Inflow Spiked Just Before The Crash
In a new post on X, CryptoQuant Head of Research Julio Moreno discussed the latest trend in Bitcoin Exchange Inflow. Exchange Inflow is an on-chain metric that tracks the total amount of assets being transferred into the wallets of centralized exchanges.
Investors deposit many coins on these platforms when this indicator’s value is high. One of the main reasons holders may transfer to exchanges is for selling-related purposes so this trend can have bearish consequences for BTC’s value.
On the other hand, the low metric implies holders aren’t moving that many coins from self-custody into exchanges, which, depending on whether outflows are also occurring, can potentially be bullish for the cryptocurrency.
Now, here is the chart shared by Moreno that shows the trend in the Bitcoin
We współpracy z: https://www.newsbtc.com/bitcoin-news/bitcoin-plummets-59000-on-chain-data-why/
