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

By Bhushan Akolkar
May 10, 2022 Updated May 10, 2022
Best In

Earn

Telegram

China

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.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Next Story