Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. On-chain data shows the average Bitcoin exchange deposit has ballooned to a significant size, a potential sign that whales are making inflows. Average Bitcoin Exchange Inflow Hits 2.62 BTC
As pointed out by CryptoQuant community analyst Maartunn in an X post, the mean Exchange Inflow has shot up for Bitcoin. The “Exchange Inflow” here refers to an indicator that keeps track of the BTC transactions that are heading toward centralized exchanges from self-custodial wallets. Related Reading Dogecoin Network Comes Alive: Active Addresses Jump 28% 14 hours ago
In the context of the current topic, the version of the metric that’s of interest is the one tracking mean exchange deposits. That is, this indicator measures the size of the average transfer that’s being sent to exchange-related wallets.
When the value of the metric is high, it means the average exchange inflow is significant in scale. Such a trend can be a sign that large entities are actively participating in exchange deposit activity. On the other hand, the indicator being low can suggest that smaller hands are the ones responsible for the current exchange inflows.
Now, here is the chart shared by Maartunn that shows the trend in the 7-day exponential moving average (EMA) of the mean Bitcoin Exchange Inflow over the past year: The value of the metric seems to have seen a sharp spike in recent days | Source:@JA_Maartun on X
As displayed in the above graph, the 7-day EMA of the mean Bitcoin Exchange Inflow has just observed a rapid surge, indicating that whales have potentially ramped up their deposit activity.
Generally, one of the main reasons why investors transfer their coins to exchanges is for selling-related purposes, so this spike in the mean Exchange Inflow may be a sign that the big-money hands are preparing to exit from the cryptocurrency. The latest high level of the indicator isn’t ordinarily seen, serving as a rare signal for the network. “The average BTC transaction sent to exchanges climbed to 2.62 BTC, a level that typically only appears during high-stress market moves,” explained the analyst.
From the chart, it’s visible that the last time the Exchange Inflow saw a similar surge was alongside the price crash at the start of February. It now remains to be seen whether the latest spike in the indicator will have any effect on the Bitcoin price. Related Reading Recent Bitcoin Rally Saw Retail Shift To Selling, Glassnode Reveals 18 hours ago
In some other news, very old Bitcoin hands have shown activity recently, as Maartunn has highlighted in another X post. The transactions that have involved coins older than 10 years | Source: @JA_Maartun on X
From the chart, it’s visible that multiple large transactions involving tokens older than ten years have been spotted on the blockchain over the past couple of days. In total, these transactions have broken dormancy for about 600 BTC, worth about $41.2 million right now. BTC Price
Bitcoin has made some recovery from its lows as its price has climbed back to $68,500. The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView Featured image from Dall-E, chart from TradingView.com