Data suggests that the crypto market is now completely bearish.
The value of Bitcoin keeps declining at an alarming rate. The leading digital asset has lost 5.02% and now trades at $31,782, according to the current Coinmarketcap data. Also, data from various on-chain analytics platforms shows a huge inflow of BTC into exchanges.
As per data from Santiment, Monday’s net sum of approximately 40,620 BTC in exchange inflow is the largest spike since December 2019.
“As Monday has crossed into its final trading hour (UTC time), a landmark in net #Bitcoin moving to exchanges has occurred. Today’s net sum of ~40,620 $BTC in exchange inflow is the largest spike since Dec 2019. This marks maximal crowd polarization.”
🤯 As Monday has crossed into its final trading hour (UTC time), a landmark in net #Bitcoin moving to exchanges has occurred. Today's net sum of ~40,620 $BTC in exchange inflow is the largest spike since Dec, 2019. This marks maximal crowd polarization. https://t.co/lqFDMIMPKQ pic.twitter.com/ivlQKpQyEg
— Santiment (@santimentfeed) May 9, 2022
According to the Santiment data, 2019 was the last time three inflow spikes exceeded that of May 9, 2022. Data from Cryptoquant added that the spot exchange inflows hit a new 2-year peak. While All Exchanges BTC inflows are at one Year high.
$BTC whales are depositing their holdings in exchanges
1. All Exchanges Inflow hits a 1-year high
2. Spot Exchanges Inflow hits over a 2-year high
Live Chart👇 https://t.co/0ti93G7oyj pic.twitter.com/wkdTEpMoEc
— CryptoQuant.com (@cryptoquant_com) May 10, 2022
Furthermore, Glassnode data revealed that the BTC balance on exchanges of 2,541,015.426 BTC is now at a 1-month high, beating the previous record of 2,532,697.774 BTC, which was set on April 10, 2022.
📈 #Bitcoin $BTC Balance on Exchanges just reached a 1-month high of 2,541,015.426 BTC
Previous 1-month high of 2,532,697.774 BTC was observed on 10 April 2022
View metric:https://t.co/9vOOAmwh32 pic.twitter.com/i0O7KnMjcb
— glassnode alerts (@glassnodealerts) May 10, 2022
The massive BTC inflows to exchanges continued from what we previously reported here on TheCryptoBasic, indicating that some Whales are exiting their BTC positions. All the data above shows that investors are in full panic mode and the crypto market is completely bearish. This is further confirmed by the bitcoin fear and greed index, which dropped to 10 from 11, reported yesterday.
Bitcoin Fear and Greed Index is 10. Extreme Fear
Current price: $29,913 pic.twitter.com/JZFFK2esWY
— Bitcoin Fear and Greed Index (@BitcoinFear) May 10, 2022
Yesterday we reported that Above 60K Bitcoin was shuffled Among BTC Whales and Exchanges Within 24 Hours Causing substantial selling Pressure.
Massive Amounts Of Shorts Expected?
Another Santiment data revealed that the BTC’s decline below the $30k mark, the first in 12 months, suggests that more intense selling pressure can be expected based on the funding rate data.
📺 Funding rate data indicates a massive amount of shorts are coming in after #Bitcoin fell below $30k for the first time in about a year. Our latest video covers this, trader pain, weak hands exiting, and plenty more as we figure out what's next! 📊 https://t.co/KOeItPxg44 pic.twitter.com/afHkpbB5V6
— Santiment (@santimentfeed) May 10, 2022
The inference drawn from this data is that the general decline in the crypto market would likely continue, at least in the short term.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.