Bitcoin price sink or swim: Largest BTC exchange inflow worries investors


  • 1.69 million Bitcoins were moved to exchanges, the highest inflow since October 2021. 
  • The largest single day spike is similar to March 2020, when Bitcoin price suffered a steep decline. 
  • Analysts reveal bearish outlook on Bitcoin price as the asset falls below all key moving averages for the fifth time ever. 

$33.5 billion in Bitcoin has been moved to exchanges between September 7 and September 13. This is the highest amount of inflow since October 2021, and it raised concerns among holders and traders. 

Also read: Ethereum v. Bitcoin: ETH is winning despite BTC price rally to $22,000

Bitcoin inflow to exchanges increases, will traders shed BTC holdings?

1.69 million Bitcoin was moved to cryptocurrency exchanges in the second week of September 2022. $33.5 billion worth of Bitcoin has flooded exchanges for the first time since October 2021. Typically when exchanges are flooded with Bitcoin, it is associated with a decline in the asset’s price. Whales keen on shedding their holdings and retail investors looking to book profits move their BTC to exchanges. 

Bitcoin moved to exchanges in September 7 to 14

Bitcoin moved to exchanges in September 7 to 14

Interestingly, Bitcoin exchanges have seen a spike in trade volume as price declined and this sparked an interest in trading. Based on data from crypto intelligence platform Glassnode, exchange inflows hit a peak since March 2020. 

David Ellis, leading Bitcoin maximalist and analyst was quoted in a recent tweet:

Orcas vomited 11.8K coins but Minnows returned by the tens of thousands, presumably because alts are beginning to crumble. Exchange flows were tame today for the first day in three, but volume was still well above average. The scent of volatility is in the air.

Ellis pointed out that BTC inflows to Coinbase, OKX and Huobi imply that derivatives markets are setting up to create volatility in spot markets through major moves. 

Miners who held BTC through the “capitulation” period in August 2022 and were bullish on the asset have started shedding their Bitcoin in recent weeks. 

Glassnode analysts argue that Bitcoin has nosedived below its 60-day, 120-day, 200-day, 360-day, and 720-day moving averages. Every time Bitcoin’s price declines below these moving average levels, it coincides with a “generational buying opportunity.” 


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


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high

Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high

Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.

More Bitcoin News
Cardano breaks above descending trendline, eyes April high as bullish momentum builds

Cardano breaks above descending trendline, eyes April high as bullish momentum builds

Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.

More Cardano News
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut

Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut

Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.

More Cryptocurrencies News
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut

Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.

More Bitcoin News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP