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Bitcoin whales jump ship as stock market inflows hit 3-month high

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The number of bitcoin whales is rapidly falling to levels not seen since earlier this year, possibly due to the three-month high in coin inflows to centralized exchanges (CEXs).

Bitcoin (BTC) market tracker Glassnode has issued several bearish indicators for the largest cryptocurrency by market cap, including data pointing to a market exit for whales holding at least 1,000 coins and exchange inflows of more than 1.7 million coins, the most since February.

High BTC CEX inflows suggest whales may be exiting the market by selling coins, possibly as a way to prepare for an extended market downtrend. Cointelegraph reported on May 7 that the recent sell-offs were likely driven by short-term holders accumulating coins in late January and early February when prices hit a 6-month low of around $34,800.

Adverse market outlook based on hard data has caused the Bitcoin Fear and Greed Index to fall to 11, the “Extreme Fear” region. The index assesses the overall level of fear or greed among Bitcoin investors.

Despite the bad sentiment, daily BTC transactions do not appear to have been negatively impacted yet. According to on-chain data from YCharts, as of May 8 there were 233,892 daily transactions worth about $30 billion, roughly in line with the average since January.

Leading on-chain analyst at Glassnode “Checkmate” tweeted Sunday, “Many of you are waiting for Bitcoin’s “capitulation wick”,” partially confirming the notion that investors are expecting BTC to drop further. A wick of capitulation is usually marked by a relatively long, sudden, and catastrophic drop in price, as witnessed on March 12, 2020, when BTC fell 43% in one day to around $4,600.

Related: Bitcoin Price Target Now $29K, Trader Warns After Terra Survived $285M FUD Attack

Market analyst Caleb Franzen tweeted to his 11,000 followers on Sunday that investors should be on the lookout for markets that continue to trend lower based on his analysis suggesting we will remain “short term bearish”. He concluded by stating that it “seems worthwhile anticipating more pain.”

BTC is currently down 10.39% over the past seven days and is trading at around $33,806, according to Cointelegraph data.