- 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
XRP gains as traders gear up for futures ETFs debut this week
XRP climbs over 3% on Monday, hovering around $2.33 at the time of writing. The rally is likely catalyzed by key market movers like XRP futures Exchange Traded Funds (ETFs) approval by the US financial regulator, the Securities and Exchange Commission (SEC), and a bullish outlook.
Bitcoin Price Forecast: BTC eyes $97,000 as institutional inflow surges $3.06 billion in a week
Bitcoin (BTC) price is stabilizing above $94,000 at the time of writing on Monday, following a 10% rally the previous week. The institutional demand supports a bullish thesis, as US spot Exchange Traded Funds (ETFs) recorded a total inflow of $3.06 billion last week, the highest weekly figure since mid-November.
Ethereum Price Forecast: ETH ETFs post first weekly inflows since February
Ethereum (ETH) recovered the $1,800 price level on Saturday after US spot Ether ETFs (exchange-traded funds) recorded their first weekly inflows since February.
Defi Development Corporation files to offer $1 billion in securities to boost its Solana holdings
Defi Development Corporation (formerly Janover) filed a registration statement with the Securities & Exchange Commission (SEC) on Friday, signaling its intent to offer and sell a wide range of securities, including common and preferred stock, debt instruments and warrants for the purchase of equity
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.