- 1.68 million Bitcoins flow into exchanges, the most significant inflow since June 2019.
- Analysts admit to taking profits in Bitcoin and Ethereum on crypto Twitter, traders have a cautious outlook on the assets.
- Bitcoin experiences pullback ahead of $1.8 billion BTC options expiry.
Overall exchange activity of Bitcoin and Ethereum surges, analysts expect higher volatility in the two assets over the weekend.
Traders ramp up profit-taking in Bitcoin and Ethereum ahead of $1.8 billion BTC options expiry
Analysts have noted massive volatility in Bitcoin and Ethereum prices in the past 24 hours. There is a notable spike in Bitcoin exchange inflow, nearly 3700 Bitcoins hit exchanges, and net exchange flow is positive. The influx is the largest since June 2019, and analysts had anticipated a spike in volatility in response to increased Bitcoin reserves on exchanges.
This implies that traders have transferred Bitcoin to exchange wallets for profit-taking, ahead of the expiry of $1.8 billion BTC options.
#Bitcoin just made history with its largest day of exchange inflow since June 19, 2019. These days are now tied for the largest inflow day of all-time, both with 1.68M $BTC flowing to exchanges on these respective days. Expect increased volatility. https://t.co/yzOHzqlrKW pic.twitter.com/dT3JbyDD2m
— Santiment (@santimentfeed) August 27, 2021
Bitcoin in whale wallets or addresses holding 100 to 10,000 Bitcoins is back in circulation as it hits exchanges and smaller wallets are accumulating. This may emerge as an unfavorable situation that leans towards an overall bearish outlook, based on Delphi Digital's latest report titled "Tether Grows, Whales Dump, and ETH Hash Rate at ATHs."
An altcoin analyst behind the Twitter handle @AltcoinSherpa has admitted to profit-taking in Ethereum and stated that he would resume buying in December.
$ETH: This is my $ETHBTC chart and how I plan on playing these seasons. I think we still may have another few weeks of good times for #Altcoins but I'm playing it safe and taking profits around here and a bit higher. I'm selling into $BTC and will buy in Nov/Dec. #Ethereum pic.twitter.com/7hFo8VgYeJ
— Altcoin Sherpa (@AltcoinSherpa) August 27, 2021
In the case of Bitcoin, traders are anticipating a pullback. Bitcoin options are expiring on the Deribit exchange on the last Friday of the month. $1.8 worth of calls are placed to short or sell Bitcoin at $50,000.
If Bitcoin continues trading above $50,000, these traders will suffer losses when their positions are closed.
FXStreet analysts have predicted that Bitcoin is likely to form a bull trap, lure traders into long positions ahead of the crash to $40,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.