Bitcoin All Exchange Inflows Hit 1-Year High, Massive BTC Shorts Coming In

Bhushan Akolkar
May 10, 2022
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Will Bitcoin Price Recover After $1.7 Billion Liquidation Event?

The world’s largest cryptocurrency Bitcoin (BTC) continues its downward fall at an unprecedented rate. As of press time, Bitcoin is down another 8% slipping under $31,000 for the first time since July 2021.

On-chain data shows that Bitcoin whales have been depositing the BTC on the exchanges in massive numbers. As per data from CryptoQuant, the all-exchange inflows of Bitcoin have touched a 1-year high. Similarly, the spot exchange inflows have touched a two-year high.

On-chain data from Santiment further shows that more than 40K Bitcoins moved to the exchanges on Monday, the largest single-day inflow after December 2019. Santiment notes:

“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”.

Courtesy: Santiment

Massive Bitcoin Shorts Coming In

On-chain data provider Santiment reports that the “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”.

It means that the carnage on the crypto street won’t be stopping anytime soon, and investors are in for additional pain. On the other hand, the U.S. equity market is showing up no signs of reversal and continues to head downwards.

Nasdaq Composite (INDEXNASDAQ: .IXIC) was down 4.29% losing more than 500 points in a single day. Dow Jones tanked 2% and the S&P 500 tanked 3.2% on Monday.

As of press time, the broader cryptocurrency is down by 10% currently at $1.4 trillion. Terra’s LUNA remains the biggest loser with all the drama that surrounds the UST stablecoin losing its dollar peg.

However, during this market crunch, El Salvador announced its highest-ever one-time purchase of Bitcoins. The Latin American country purchased 500 Bitcoins valued at $15,372,000.

With its recent purchase, El Salvador holds more than 2,300 Bitcoin in its kitty.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.