BTC Dips Below $40k as Transfers to Centralized Crypto Exchanges Rise
Bitcoin remittances to centralized cryptocurrency exchanges have soared, fueling bearish predictions that the crypto markets are on the verge of collapsing. On May 18, according to data posted by Lex Moskovoski, CIO of Moskovoski Capital, 22,917 BTC were moved into centralized exchanges within an hour.
The hourly inflow, according to Moskovoski, was the highest since the March 2020 “Black Thursday” disaster. Transfers to exchanges are usually viewed as assets being transferred onto centralized sites for trading/liquidation, while outflows typically signal movement of crypto assets into cold storage for safety or DeFi networks for yield generation.
According to info provided by on-chain crypto analytics company Glassnode, net transfer volume of Bitcoin to the top centralized exchange, Binance, has reached new all-time highs over the last two days. Twitter analyst William Clemente III posted the information with his 70,400 followers, prompting bearish market forecasts on social networking sites. In the last 48 hours, nearly 35,000 Bitcoin valued over $1.4 billion has been sent to Binance platform, according to the table.
Kraken’s growth head Dan Held. Clemente responded “Feels like capitulation. Let’s see one final nasty liquidation wick.”
Regardless of the fact that Bitcoin’s price has fallen to new lows below $40,000, some observers are nevertheless optimistic. Lark Davis, a well-known strategist, pointed out that the latest decline has driven Bitcoin’s 14-day relative-strength index into oversold zone for the foremost time since March 2020, indicating that the slump could be approaching its end.
Some traders perceive price correction as a healthy move for a bullish revival, expecting a quick turnaround after sellers have expended their positions. Surging investments into Bitcoin’s spot and futures markets in 2021, according to Twitter user “YHRW80,” imply that the sector is driven by “greed” instead of “fear.”
The Bitcoin Fear and Greed Index, on the other hand, does not comply with YHRW80’s assessment, labeling current Bitcoin investor sentiment as “extreme fear.” Indian media reported today that the government is expected to reconsider its proposed crypto ban and set up a new working group to look at governing crypto assets in India.
The impending timeline for problematic stablecoin issuer Tether to report its quarterly financial statements as portion of its agreement with the New York Attorney General’s office, according to some observers, is the impetus for the surge in inflows. Tether released a rundown of its holdings for the first time last week, claiming that gold, cash equivalents, other short-term deposits, and commercial paper account for three-quarters of the funds backing its stablecoin.
22,917 #Bitcoin in a single hour were deposited to exchanges yesterday.
This hourly inflow is rivaled only by the March, 2020 crash.
People are scared. pic.twitter.com/uH4lBL6Onk
— Lex Moskovski (@mskvsk) May 18, 2021
Largest day of BTC inflows to Binance ever. pic.twitter.com/HG56s37mtv
— William Clemente III (@WClementeIII) May 18, 2021