Key Points
- Bitcoin (BTC) exchange net flows have seen a significant surge, hinting at a possible selloff.
- Large Bitcoin transactions have also increased, alongside a rise in whale accumulation.
Bitcoin has been experiencing a significant increase in inflows into centralized exchanges since the beginning of December. This trend suggests a potential selloff may be on the horizon.
Data from IntoTheBlock revealed that Bitcoin’s exchange net flows jumped from a net outflow of $69 million to a net inflow of $326 million. On December 3, the flagship cryptocurrency recorded a net inflow of $230 million.
Inflows and Whale Activity
In total, over $562 million in Bitcoin has poured into CEX platforms, according to ITB data. Furthermore, the net flow ratio of large Bitcoin holders to exchanges rose to 0.86% on Tuesday, an indicator that Bitcoin whales have been more active than retail holders.
The analytics platform data shows that large Bitcoin transactions, worth at least $100,000, also rose from 17,960 to 25,830 during the same period as the exchange net flows. The volume of these large transactions surged from $38.7 billion to $87.3 billion in Bitcoin on Monday, December 2. Over the past week, Bitcoin recorded a total of $169.6 billion in whale transactions.
On-Chain Data and Market Trends
On-chain data shows that an 11-year-old whale address with 2,700 BTC, worth over $257 million, transferred the Bitcoin holding to another wallet for the first time since December 2013. This move suggests a potential selloff due to the 157 times return. The whale had accumulated the Bitcoins when the price was around $625, totaling $1.68 million.
Currently, Bitcoin is hovering at $96,500 after gaining 1% over the past 24 hours. Its market cap has once again surpassed the $1.9 trillion mark. The increase in exchange inflows could trigger fear, uncertainty, and doubt (FUD) among retail investors. However, a spike in whale accumulation could shift market sentiment and bring buying pressure.
The next significant bullish catalyst for Bitcoin and altcoins could be the potential U.S. Federal Reserve’s rate cut. The FOMC meeting, where this decision will be made, is scheduled for December 17 and 18.
Please note that this article is not investment advice. It is for educational purposes only.