Bitcoin Plummets To $59,000, On-Chain Data Reveals Why

Bitcoin has observed a plunge to the $59,000 level during the past day. Here’s what could be behind it, according to on-chain data. Bitcoin Exchange Inflow Spiked Just Before The Crash In a new post on X, CryptoQuant Head of Research Julio Moreno discussed the latest trend in Bitcoin Exchange Inflow. Exchange Inflow is an on-chain metric that tracks the total amount of assets being transferred into the wallets of centralized exchanges. Investors deposit many coins on these platforms when this indicator’s value is high. One of the main reasons holders may transfer to exchanges is for selling-related purposes so this trend can have bearish consequences for BTC’s value. Related Reading: Litecoin Sees Sudden Exodus Of Retail Investors: Why This Can Be Bullish On the other hand, the low metric implies holders aren’t moving that many coins from self-custody into exchanges, which, depending on whether outflows are also occurring, can potentially be bullish for the cryptocurrency. Now, here is the chart shared by Moreno that shows the trend in the Bitcoin Exchange Inflow over the past few days: As displayed in the graph at the top, the Bitcoin Exchange Inflow saw some notable spikes in the lead-up to the latest price plunge. The version of the indicator in the chart is specifically for the spot platforms, so selling was likely the goal of the investors making these deposits. The CryptoQuant head has also attached the data for another metric: the Spent Output Value Bands version of the Exchange Inflow, under the chart for the Exchange Inflow. This indicator shows how the Exchange Inflow breaks down according to the transactions’ size. In the graph, Moreno has specifically highlighted the 1,000 to 10,000 BTC value band, corresponding to addresses carrying between 1,000 and 10,000 tokens in their balance. Investors of this scale are popularly known as the whales and are considered among the market’s most influential entities. As the chart shows, the Exchange Inflow for these large Bitcoin holders also spiked alongside the spikes in the general metric, implying that the whales contributed to some of the deposits. Related Reading: Solana, Ethereum Attract Traders Amid Bitcoin Open Interest Plunge Given the timing of the inflows made by these humongous investors, it’s probable that this selling was partially responsible for the bearish price action the cryptocurrency witnessed during the past day. As such, the indicator could be worth monitoring shortly, as more large deposits could suggest that the Bitcoin sellers aren’t done yet. BTC Price At the time of writing, Bitcoin is floating around $59,900, down almost 4% over the last 24 hours. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin exchange inflow has fallen sharply in August CryptoQuant

Exchange inflows gauge potential selling pressure, with high inflows suggesting high sell pressure and low inflows suggesting low pressure.

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PEPE Whales Move $21 Million Worth Of Coins  Here Are The Destinations

On-chain data shows PEPE whales have moved large amounts of the memecoin during the past day. Here’s where these tokens have been heading. PEPE Whales Have Been Active On The Network Today According to data from the cryptocurrency transaction tracker service Whale Alert, two large PEPE transactions have occurred in the space of a few hours during the past day. Both of these moves are of a scale that’s typically associated to the whales, humongous entities that can carry some influence in the market thanks to their ability to make such large transfers. Related Reading: Bitcoin To Reach Escape Velocity? Analyst Makes The Case Because of their position on the network, their moves can be worth watching, as they may end up reflecting on the price of the cryptocurrency. As for how exactly the asset may be impacted by the transfers of these investors can come down to what they intended to achieve with the moves. It can be hard to say about any exact motive, but the details of the transactions on the blockhain can sometimes provide hints about the context surrounding it. Below are the details of the first PEPE whale transfer from the past day: Looks like this massive transfer on the Ethereum blockchain took a fee of just $1.14 to go through | Source: Whale Alert As is visible, the sending address in the case of this PEPE whale transaction was an unknown wallet, meaning that it was unattached to any known centralized platform like an exchange. Such wallets are usually the investors’ personal, self-custodial addresses. The receiving address, on the other hand, does have a platform affiliated to it: the cryptocurrency exchange Binance. Thus, it would appear that the whale moved 1,238,332,920,144 PEPE (worth over $10.5 million at the time the transfer went through) from their personal wallet to the custody of the exchange. Transfers of this type are known as exchange inflows. The investors make exchange inflows whenever they want to make use of one of the services that these platforms provide, which can include selling. As such, exchange inflows can end up being bearish for the price. If the whale, in the current case, indeed made the deposit to sell, then PEPE could naturally be negatively impacted, given the large scale of the transaction. Fortunately for the investors of the meme coin, though, the second transaction from today is actually the exact opposite of this transfer; it’s an exchange outflow. The second large PEPE transaction that took place on the network in the past day | Source: Whale Alert As displayed above, this PEPE whale moved coins from Binance to an unknown wallet through this transaction. Investors generally transfer to personal addresses when they plan to hold in the long term, as it’s safer to do so outside the custody of central entities. Thus, it’s possible this whale plans to HODL these coins. Interestingly, the amount involved in this move, 1,241,850,000,000 PEPE ($10.5 million), is quite similar to the exchange inflow. Given that the same exchange is also involved in both, it’s possible that the same whale may in fact be responsible for the both of them. Related Reading: Bitcoin Relative Open Interest Lowest Since Feb, Analyst Says Hard To Be Bearish Though, since the addresses don’t quite match, it’s still uncertain. Either way, the fact that an equal-sized exchange outflow has occurred mere hours after should be able to balance out any bearish effects arising out of the inflow, at least in theory. PEPE Price At the time of writing, PEPE is floating around the $0.000008445479 mark, up more than 21% over the past week. The price of the asset appears to have gone up over the last few days | Source: PEPEUSD on TradingView Featured image from Abhi Verma on Unsplash.com, chart from TradingView.com

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Bitcoin Inflow To Exchanges At 2016 Levels, Impact On Price Will Be Low Even If Mt. Gox Sells

Bitcoin briefly shot over $70,000 yesterday before plunging below $69,000 to spot rates. While there are hints of weakness, one analyst on X notes that inflow to exchanges like Binance and OKX is subdued, meaning that users are not keen to sell despite prices tanking and failing to break $72,000. Bitcoin Inflow To Exchanges Remain Low The analyst notes that exchange inflows are low at spot rates. As of May 28, exchanges received just 25.9K BTC daily. From historical exchange inflow data from CryptoQuant, the current inflow rate is at the 2016 level.  There was a sharp pick-up in momentum after 2016, but the inflow to exchanges has been shrinking since the beginning of the year. It should be noted that the United States Securities and Exchange Commission (SEC) approved nine spot Bitcoin exchange-traded funds (ETFs) around this time.  Related Reading: Bullish Bitcoin: Expert Cites $123,832 Target Based On Past Trends With this product in the United States, some large whales likely decided to convert their coins and hold ETFs instead. In this way, they diverted custody to an approved custodian, depending on the spot Bitcoin ETF issuer they chose. Mt. Gox Moving BTC: How Will Prices React If They Sell? While the average inflow to exchanges is at 2016 levels, there might be changes in the coming months. On May 28, Mt. Gox, the defunct crypto exchange hacked in 2014, moved over $9.4 billion of BTC, data from Token Unlocks show. This unexpected transfer sparked market concerns. Currently, the intention remains unknown. Still, the implications could be dire if they decide to liquidate on exchanges. Even with this possibility, the analyst argued that BTC’s low average exchange inflow to exchanges would be a timely cushion. Should Mt.Gox creditors decide to sell, the analyst believes the market will easily absorb this sell-off despite increased initial volatility. What this means is that the price impact will be minimal. Related Reading: Polkadot (DOT) Price Prediction: Analyst Sparks Bullish Frenzy With $10 Target Before being hacked and losing over 800,000 BTC, Mt. Gox was a popular Bitcoin exchange. At one point, it commanded over 70% of all global BTC trading volume. In the next few months, victims of the unfortunate hack will be compensated. Feature image from DALLE, chart from TradingView

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Bitcoin Entry Opportunity? Waiting Game Is Suggested by Exchange Inflow Momentum

With the Bitcoin inflow momentum signaling a cooling market phase, crypto analyst Ali Martinez is calling for patience

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Bitcoin Whales Showing Different Behavior From Past Cycles, But Why?

On-chain data suggests the Bitcoin whales have been showing different behavior regarding exchange inflows from the last cycle. Heres why this may be so. Bitcoin Whales Are Showing Different Behavior In Exchange Inflows This Time As an analyst explained in a CryptoQuant Quicktake post, the BTC whales movements have been different this time compared to [...]

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Stablecoin buying power on exchanges increases as BTC and ETH see outflows

In June, the surge in stablecoin volume flowing into exchanges has been a clear indicator of the market’s changing dynamics. This is particularly evident when analyzing exchange buying power, a metric that measures the 30-day change in stablecoin buying power on exchanges. The exchange buying power metric is calculated by tracking the 30-day change in […]

The post Stablecoin buying power on exchanges increases as BTC and ETH see outflows appeared first on CryptoSlate.

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Solana Whale Makes Massive 1,000,000 SOL Deposit To Binance, Bearish Sign?

On-chain data shows a Solana whale has just moved a massive SOL stack to Binance, which could prove to be bearish for the assets price. Solana Whale Has Deposited 1 Million SOL To Binance Today According to data from the cryptocurrency transaction tracker service Whale Alert, several large SOL transactions have occurred on the blockchain [...]

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Bitcoin Rally Stalls As Short-Term Holder Exchange Inflows Intensify

On-chain data shows the Bitcoin exchange inflows of the short-term holders have intensified recently as the asset’s rally has come to a halt. Bitcoin Short-Term Holders Are Showing Elevated Exchange Inflows According to data from the on-chain analytics firm Glassnode, the short-term holders have recently made inflows equivalent to 1.28% of their entire supply. The [...]

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Bitcoin Exchange Inflows Mostly Coming From Loss Holders, Weak Hands Exiting?

On-chain data suggests a majority of the Bitcoin exchange inflows are currently coming from investors holding their coins at a loss. Bitcoin Exchange Inflow Volume Is Tending Towards Losses Right Now According to data from the on-chain analytics firm Glassnode, the short-term holders are mostly contributing to these loss inflows. The “exchange inflow” is an indicator that measures the total amount of Bitcoin that’s currently flowing into the wallets of centralized exchanges. Generally, investors deposit to these platforms whenever want to sell, so a large amount of inflows can be a sign that a selloff is going on in the BTC market right now. Low values of the metric, on the other hand, imply holders may not be participating in much selling at the moment, which can be bullish for the price. In the context of the current discussion, the exchange inflow itself isn’t of relevance; a related metric called the “exchange inflow volume profit/loss bias” is. As this indicator’s name already suggests, it tells us whether the inflows going to exchanges are coming from profit or loss holders currently. When this metric has a value greater than 1, it means the majority of the inflow volume contains coins that their holders had been carrying at a profit. Similarly, values under the threshold imply a dominance of the loss volume. Related Reading: Bitcoin Hangs At $26,200: Why This Is A Crucial Support Level Now, here is a chart that shows the trend in the Bitcoin exchange inflow profit/loss bias over the last few years: The value of the metric seems to have observed some decline in recent days | Source: Glassnode on Twitter As shown in the above graph, the Bitcoin exchange inflow volume profit/loss bias has had a value above 1 for most of the ongoing rallies that started back in January of this year. This suggests that most of the exchange inflows in this period have come from the profit holders. This naturally makes sense, as any rally generally entices a large number of holders to sell and harvest their gains. Related Reading: Bitcoin Bearish Signal: NUPL Finds Rejection At Long-Term Resistance There have been a couple of exceptional instances, however. The first was back in March when the asset’s price plunged below the $20,000 level. The bias in the market shifted towards loss selling then, implying that some investors who bought around the local top had started capitulating. A similar pattern has also occurred recently, as the cryptocurrency’s price has stumbled below the $27,000 level. Following this plunge, the indicator’s value has come down to just 0.70. Further data from Glassnode reveals that the bias of the long-term holders (LTHs), the investors holding their coins since at least 155 days ago, have actually leaned towards profits recently. Looks like the indicator has a positive value right now | Source: Glassnode on Twitter From the chart, it’s visible that the indicator has a value of 1.73 for the LTHs, implying a strong bias toward profits. Naturally, if the LTHs haven’t been selling at a loss, the opposite cohort must be the short-term holders (STHs). This group seems to have a heavy loss bias currently | Source: Glassnode on Twitter Interestingly, the indicator’s value for the STHs is 0.69, which is almost exactly the same as the average for the entire market. This would mean that the LTHs have contributed relatively little to selling pressure recently. The STHs selling right now would be the ones that bought at and near the top of the rally so far and their capitulation may be a sign that these weak hands are currently being cleansed from the market. Although the indicator hasn’t dipped as low as in March yet, this capitulation could be a sign that a local bottom may be near for Bitcoin. BTC Price At the time of writing, Bitcoin is trading around $26,400, down 1% in the last week. BTC has struggled recently | Source: BTCUSD on TradingView Featured image from ???? cdd20 on Unsplash.com, charts from TradingView.com, Glassnode.com

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Quant Points Out Curious Relationship Between USDT Inflows & Bitcoin Price

A quant has explained using on-chain data that an interesting relationship may exist between the USDT exchange inflows and Bitcoin price. USDT Derivative Exchange Inflows May Be Influencing Bitcoin Price As pointed out by an analyst in a CryptoQuant post, many stablecoins entering into derivative exchanges have recently preceded a rise in the BTC price. [...]

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Bitcoin Exchange Inflows Fall To 2020 Levels As Activity Remains Low

Data shows the Bitcoin exchange inflows and outflows have both shrunk recently as market activity has remained low. Bitcoin Exchange Inflows & Outflows Continue To Decline As per the latest weekly report from Glassnode, the BTC inflow volumes are now only around $350-$400 million per day. The “exchange inflow” is an indicator that measures the total amount of Bitcoin currently being deposited to centralized exchanges by holders. Its counterpart metric is the “exchange outflow,” and it naturally tracks the volume leaving exchange wallets. Generally, during periods of high activity in the market, both these indicators rise to high values as a large number of investors make their respective moves. However, the price may react in particular directions depending on which of these metrics is higher at the moment. Since one of the main reasons why investors use exchanges is for selling purposes, inflows outweighing outflows could be bearish for Bitcoin. On the other hand, outflows being more dominant can suggest there may instead be buying pressure in the market as investors are withdrawing their coins for accumulation. Now, here is a chart that shows the trend in the Bitcoin exchange inflows and outflows over the last few years: looks like both these metrics have declined in recent weeks | Source: Glassnode's The Week Onchain - Week 2, 2023 As shown in the above graph, the Bitcoin exchange inflows and outflows were both at high levels during the past couple of years, with their volumes remaining in the range of multi-billion dollars throughout. At the peak of inflows back in May 2021, between $2.8 billion to $3.5 billion per day was entering exchange wallets. Related Reading: Is The Bitcoin Bottom In Yet? Here’s What aSOPR Metric Suggests Recently, however, both the inflows and the outflows have significantly declined. Currently, the inflow volumes are between $350 million to $400 million per day, which are lows not seen since 2020. The outflows haven’t quite shrunk to these levels yet, possibly because of the fact that the collapse of FTX lead to renewed interest in self-custody among investors, which made them withdraw large amounts from centralized platforms. In the chart, data for the Ethereum exchange flows are also displayed. It seems like before May 2021, the Bitcoin exchange flow dominance was about 70%, which means the combined volumes of Ethereum inflows and outflows made up for 30% of the total between ETH and BTC during the period. But since May 2021, the share of the Ethereum flows has significantly increased as ETH inflows and outflows dominance is now 42%. This trend suggests that the relative trading interest in ETH has gone up in the last one and a half years, while BTC has lost some mindshare. Related Reading: Ethereum 1-Month Realized Volatility Drops To Rare Level Seen Only Thrice In History Though, in pure numbers, both cryptocurrencies have seen very little market activity recently as both their exchange inflows and outflows are at pretty low values. BTC Price At the time of writing, Bitcoin is trading around $17,200, up 3% in the last week. The value of the asset seems to have surged in the last couple of days | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com

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Bitcoin Investors Haven’t Responded To Russia-Ukraine War With Large Inflows (Yet)

On-chain data shows Bitcoin investors haven’t moved large amounts to exchanges in response to the Russia-Ukraine war (at least for now). Bitcoin Exchange Reserve Doesn’t Spike Up Following The War Breakout Between Russia And Ukraine As pointed out by an analyst in a CryptoQuant post, the BTC reserve hasn’t moved significantly after the news of the Russia-Ukraine war. The “all exchanges reserve” is an indicator that measures the total amount of Bitcoin sitting in wallets of all exchanges. When the value of this metric rises, it means exchanges are receiving net inflows as investors deposit their coins. Such a trend is usually bearish for the price of the crypto as holders generally transfer their coins to exchanges for selling them. On the other hand, a falling reserve implies exchanges are observing more outflows at the moment. This kind of trend can be bullish as holders usually withdraw their coins for hodling purposes. Related Reading | Quant Explains How Bitcoin NUPL Can Help Predict Bull Cycles Now, here is a chart that shows the trend in the Bitcoin exchange reserve over the past few days: Looks like the value of the indicator hasn't seen any significant change over the last day | Source: CryptoQuant As you can see in the above graph, the Bitcoin exchange reserve hasn’t increased that much since the start of the Russia-Ukraine war. The price, though, has still observed a very sharp plunge down. This means that the majority of the sellers have to be those who were already keeping their coins on exchanges, planning in advance to sell them in case war broke out. Related Reading | What’s Intel CEO Pat Gelsinger Saying While Promoting The Bitcoin Mining Chip? Large inflows are common following big bearish news like this one. However, there haven’t been any such inflows yet. This would imply that those storing their coins in personal wallets haven’t panic transferred their Bitcoin to exchanges for selling, yet. The quant in the post believes that things may very well change in the coming hours, but for now, BTC hodlers outside the exchanges seem to be holding strong. BTC Price At the time of writing, Bitcoin’s price floats around $35.1k, down 18% in the last seven days. Over the past thirty days, the crypto has lost 12% in value. The below chart shows the trend in the price of BTC over the last five days. BTC's price seems to have crashed down over the past day | Source: BTCUSD on TradingView In the plunge that followed the war breakout between Russia and Ukraine, the price of Bitcoin touched as low as $34.4k before quickly jumping back a little and recovering to the current levels. Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Polygon (MATIC) Whale Makes Large Deposit To Binance, Bearish Sign?

On-chain data shows a Polygon whale has made a sizeable deposit to the cryptocurrency exchange Binance, a sign that may be bearish for MATIC. Polygon Whale Has Deposited $13.7M Worth Of MATIC To Binance According to data from the cryptocurrency transaction tracker service Whale Alert, a massive MATIC transaction has been spotted on the blockchain during the past day. The transfer in question involved the movement of 13.1 million MATIC, worth almost $13.7 million in US Dollars, when the transaction went through on the network. Given the large scale of the transfer, it’s likely that a whale entity was responsible for it. Related Reading: 95% Of Bitcoin Now In Profit: Why This Could Be A Signal To Sell Whales can be influential beings on the blockchain due to their sheer scale of holdings. As such, their movements can be worth watching, as they may lead to fluctuations in the market or, at the very least, inform us about the sentiment among these humongous entities. As for what any such transaction may imply for the market, it comes down to the intent behind it. Below are additional details regarding the latest Polygon whale transfer, which may reveal its context. Looks like this transfer cost a fee of more than $5 to go through on the Ethereum blockchain | Source: Whale Alert As is visible above, the sending address involved in this Polygon transaction was an unknown wallet. This means the address was unaffiliated with any known centralized platform like an exchange and, thus, was likely to be an investor’s wallet. On the other hand, the receiving address was connected to a centralized entity: the cryptocurrency exchange Binance. Moves like this that go from unknown wallets to exchanges are known as exchange inflows. The whale making an inflow to Binance suggests they wanted to use one of the platform’s services, which can include selling. As such, the transaction may prove to be bearish for Polygon’s price if the whale ends up selling their stack. MATIC Is Behind Market With Only 1% Surge Today Whereas the rest of the cryptocurrency market has been racing up in the past day, led by Bitcoin’s strong surge towards $57,000, Polygon has lagged as the asset has only been able to see an uplift of 1% in the last 24 hours. The below chart shows how the coin has performed in the last few days. The price of the asset appears to have seen some uplift in the past day | Source: MATICUSD on TradingView However, Polygon’s returns of around 7% over the past week aren’t too far off from Bitcoin’s 9% profits in the same period. Still, the relatively poor performance in the past day may be why the whale has potentially decided to sell their large stack. Related Reading: Ethereum Leaves Bitcoin Behind, But Is This Rally Sustainable? Regarding market cap, MATIC is currently the 14th largest coin in the sector, with its closest competitor, Polkadot (DOT), speeding away with its gains of more than 6%. The market cap of the asset seems to be around $10 billion at the moment | Source: CoinMarketCap Featured image from Thomas Kelley on Unsplash.com, chart from TradingView.com

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Litecoin Whale Deposits Big To Binance, LTCs 3% Drop To Extend?

On-chain data shows a Litecoin whale has made a large deposit to cryptocurrency exchange Binance, which could add to the coins decline. Litecoin Whale Has Transferred 100,000 LTC To Binance Today According to data from the cryptocurrency transaction tracker service Whale Alert, a large transfer has been spotted on the Litecoin network during the past [...]

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Bitcoin Exchange Inflow Spikes, Is This Bearish?

On-chain data shows the Bitcoin exchange inflow towards Binance has spiked during the past day, which may be bearish for the price. Bitcoin Exchange Inflow Has Registered A Large Spike As an analyst in a CryptoQuant post pointed out, a whale has made a large deposit to the cryptocurrency exchange Binance. The relevant indicator here is the “exchange inflow,” which measures the total amount of Bitcoin that investors send to a specific centralized exchange (which, in this case, is Binance). When the value of this metric is high, it means that the holders are depositing large amounts to the platform right now. The investors may have made these transfers for selling-related purposes, depending on which type of exchange these inflows are for. Naturally, if that is the case, the price could feel a bearish effect from the inflows. On the other hand, low values imply the exchange in question isn’t receiving that many coins currently. Such a trend would imply that the market’s selling pressure may be low. Related Reading: Bitcoin Has Broken This Open Interest Pattern, Quant Explains Now, here is a chart that shows the trend in the Bitcoin exchange inflow for the cryptocurrency exchange Binance over the past day: The value of the metric seems to have been quite high in recent hours | Source: CryptoQuant As shown in the above graph, the Bitcoin exchange inflow for Binance has observed a rather large spike in the past day. With this deposit, around 4,451 BTC (approximately worth $133 million at the current exchange rate) has entered the platform’s wallets. Interestingly, this deposit has come from a whale that has bought 20,000 BTC over the last eight months, meaning that the investor still has over 15,000 BTC left in their wallet after the transaction. The whale may have made this transfer to take some profit at the current prices. Since the scale of the deposit is quite sizeable, it could potentially cause bearish ripples in the market. However, as another quant has explained, the deposits have been towards the derivatives side of the exchange and not the spot platform. Looks like the spot exchanges inflow hasn't moved today | Source: CryptoQuant It would appear likely that the transfer hasn’t been made to sell the coins (at least not directly) but rather for opening positions on the derivatives market. Related Reading: Signal With Perfect Track Record Predicts Bitcoin Bull Market Parabola: Analyst “This category of large wallets rarely moves directly to derivative exchanges,” notes the analyst, given that the size of the wallet in question is in the 10,000+ BTC range, the class of the largest whales on the network. Such a large position can lead to volatility in the Bitcoin price, but unlike selling from spot deposits, this price action may not necessarily be bearish for the asset. BTC Price At the time of writing, Bitcoin is trading around $29,800, down 3% in the last week. BTC has gone downhill during the last few days | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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XRP Jumps 4%, Whale Reacts With $69 Million Coinbase Deposit

On-chain data shows an XRP whale has moved a large amount of the asset to Coinbase following a 4% Christmas rally in its price. XRP Is Up More Than 4% On Christmas Day After a period of struggle in cryptocurrencies across the board, Christmas has brought back some bullish winds as Bitcoin and company have made some recovery. XRP has been no exception, with its price going up over 4% in the last 24 hours to reclaim $2.31. Related Reading: Bitcoin Sentiment Still Close To Extreme Greed: More Cooldown Needed For Bottom? Below is a chart that shows how the digital asset has performed during the last few days. As with any surge in the coin’s value, profit-taking can become a threat as investor gains balloon up. It appears one whale may have fallen prey to such a temptation. A Large Transfer Has Just Been Spotted On The Network According to data from the cryptocurrency transaction tracker service Whale Alert, a massive transaction has occurred on the XRP blockchain during the past day. The transfer in question involved the movement of 30,171,667 tokens worth more than $69.2 million at the time the sender executed the move. This is quite a large transaction, so it’s likely that a whale entity was responsible for it. Whales are investors who carry massive holdings in their wallets. As the influence of any entity on the market goes up, the more coins that they own, whales are considered a key part of the ecosystem. Because of this reason, their moves can be worth keeping an eye on. They may not always directly influence the price, but they can still inform us about the sentiment among these giants. Problem is, the anonymous nature of the blockchain means that a lot of the time, it’s not possible to discern what an investor’s intent was behind a move. Luckily, in the case of this XRP whale transaction, one end of the move contains a wallet that can be identified as being tied to a centralized platform. Here are the address details related to the transfer: As is visible above, the receiving address for this transaction was a wallet attached to the cryptocurrency exchange Coinbase. The sending address was an unknown wallet, meaning that it was likely the whale’s personal, self-custodial wallet. Transactions of this kind, where coins flow from self-custody to a centralized exchange, are known as exchange inflows. Generally, one of the main reasons why investors deposit to these platforms is for selling-related purposes, so exchange inflows can have bearish implications for the asset’s price. Related Reading: Bitcoin Coinbase Premium Giving Potential Buy Signal, Quant Says it’s uncertain, though, whether taking profits from the latest surge was indeed the goal in mind when the whale made the transaction. It may very well be the case of the investor looking to take advantage of one of the other services that Coinbase provides. Featured image from Dall-E, whale-alert.io, chart from TradingView.com

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Bitcoin To Smash $100,000? Rapid Stablecoin Exchange Inflows Continue

On-chain data shows exchanges have continued to receive stablecoin deposits recently, a sign that could be bullish for Bitcoin and other digital assets. Stablecoin Exchange Netflow Has Remained Positive Recently As pointed out by an analyst in a CryptoQuant Quicktake post, stablecoins have been flowing into exchanges recently. The on-chain metric of relevance here is the “Exchange Netflow,” which keeps track of the net amount of a given asset that’s moving into or out of the wallets associated with centralized platforms. When the value of this metric is positive, it means the investors are making net deposits of the coin to exchanges. Such a trend suggests the holders want to trade the asset away. Related Reading: 54% Of Bitcoin Supply Inactive Since 2 Years Despite 500% Price Jump On the other hand, the indicator being negative implies investors prefer to hold onto the cryptocurrency, as they are taking their tokens off into self-custody. The implication of these trends for the wider sector and the asset itself can be different depending on the exact type of coin that’s witnessing the outflows/inflows. In the case of volatile assets like Bitcoin, a positive Netflow can be bearish for the price, as it means the holders are looking to sell. BTC also acts as one of the main transition points for capital in the sector as a whole, so it being sold can be a bad sign for the rest of the coins as well. Stablecoin deposits also imply traders want to sell them, but since their price always remains stable around the $1 mark, the selling has no ‘bearish’ effect on them. Like Bitcoin, the stablecoins act as a gateway for capital into the sector. More particularly, investors invest their money into the stables whenever they want to avoid the volatility associated with other assets. Such holders usually eventually plan to delve into the volatile coins, and once they are ready, they transfer these fiat-tied tokens into exchanges to make the swap. This naturally acts as buying pressure for whatever asset that they are shifting to. As such, positive stablecoin Exchange Netflows are considered bullish for Bitcoin. Now, here is the chart shared by the quant that shows the recent trend in the Exchange Netflow for the stablecoins: From the graph, it’s visible that the stablecoin exchange netflow has mostly been sitting inside the positive territory for the last few weeks. Alongside these inflows, Bitcoin has been breaking record after record, so it’s likely that these stablecoin deposits have been acting as fuel for the asset. Related Reading: Bitcoin Officially In Overheated MVRV Zone, Rally End Near? The indicator’s value has continued to show strength recently, so it seems the investors aren’t done with their BTC accumulation yet. If the earlier trend continues, the latest stablecoin inflows can elongate the rally and perhaps help the asset to finally break through the $100,000 dream target. Bitcoin Price Bitcoin had seen a plunge under the $96,000 level yesterday, but it appears the coin has already bounced back as its price is now trading around $98,400. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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XRP Binance Inflows Spike: What It Means For Price

On-chain data shows the XRP Binance Netflow has spiked to positive levels recently. Here’s what this could mean for the asset’s price. XRP Investors Have Been Depositing To Binance Recently As explained by an analyst in a CryptoQuant Quicktake post, a large amount of XRP deposit transactions have headed to Binance recently. The on-chain metric of relevance here is the “Exchange Netflow,” which keeps track of the net transfers going in or out of a given centralized exchange. The traditional form of this metric measures the difference between the inflow and outflow volume for the platform, but in the context of the current topic, a different version of the indicator is of interest: one that counts the net number of deposit/withdrawal transactions. When the value of the metric is positive, it means there are more inflow transfers happening for the exchange than outflow ones. As one of the main reasons why investors deposit to these platforms is for selling-related purposes, this kind of trend can be bearish for XRP. Related Reading: Cardano Outperforms Market With 50% Surge: Heres Why On the other hand, the indicator being negative implies withdrawals are dominant on the exchange. Such a trend can be a sign that holders are interested in HODLing into the long term, which can naturally have bullish effects on the price. Now, here is a chart that shows the trend in the 30-day moving average (MA) of the XRP Exchange Netflow for Binance over the last couple of years: As is visible in the above graph, the XRP Exchange Netflow for Binance has mostly stayed inside the positive territory during the last two years, which suggests investors have constantly been making withdrawal transactions. Recently, however, the metric appears to have diverged from the norm, as its value has registered a sharp positive spike. The asset has seen a sharp rally of over 54% in the past week, so it’s possible that the traders making the deposits are looking to sell and realize their profits. Now, the main question is, is this selling a potential threat to XRP’s value? The indicator is sitting at 470 right now, which suggests significantly more inflows than outflows. Considering that this is also just the 30-day MA, the peak value is bound to be even higher. Related Reading: Bitcoin Is About To See A Historically-Profitable Crossover In This Metric While this high number of inflow transactions may look like a danger at first glance, it may actually not be so, since it corresponds to activity that’s mostly from the retail investors. Whales don’t tend to leave behind too many transactions, as they prefer to move large amounts with a single transaction. Thus, whenever this version of the Exchange Netflow spikes, it’s a sign that the small holders are depositing. Naturally, there could still be a few whale transfers among these inflows, which can indeed end up having a negative effect on the XRP price. It only remains to be seen, though, which of the scenarios holds true. XRP Price XRP has pulled ahead of the rest of the market with a sharp rally during the past week, which has taken its price to $1.09. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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XRP Crashes 14% As Whales Send Deposits To Exchanges

The XRP price has registered a notable drop during the past day as on-chain data shows the whales have been making transactions to exchanges. XRP Has Witnessed A Sharp Drop Over The Last 24 Hours The cryptocurrency sector has been observing bearish winds recently, with the drawdown deepening across the market during the past day. Most of the top coins, though, have managed to limit their losses, except for XRP, which has notably underperformed. Related Reading: Dogecoin Crossover That Led To 90% & 180% Rallies Could Soon Form Again The below chart shows how the coin’s recent trajectory has looked like. Following the 14% drop in the last 24 hours, XRP has come down to the $0.52 level. This plunge has also put the asset more than 21% down compared to the $0.66 top that it had seen a few days back. As for why the cryptocurrency has performed this poorly during the past day, perhaps on-chain data can provide some hints. Whales Have Been Active On The Network Recently According to data from the cryptocurrency transaction tracker service Whale Alert, several large transactions have been spotted on the XRP network in the last 24 hours. All of these transactions happen to be of a scale that’s generally associated with the whales, who are large entities that can carry a degree of influence in the market. Naturally, one whale can’t move the market on their own, but some number of them together can, which may be exactly what has happened today. Generally, it can be hard to say for certain what the whales’ intentions are when they make moves, but address details can sometimes carry a hint or two. Here are the details of the first of the whale transfers from the past day: As is visible above, the whale moved 17,940,000 XRP, worth around $10.3 million at the time the transfer was executed, from an unknown wallet to an address connected to the cryptocurrency exchange Bitstamp. An “unknown wallet” is one that’s not affiliated to any known centralized platform and is likely to be an investor’s personal address. Thus, it would appear that the whale moved coins from their self-custodial wallet to an exchange with this transaction. Related Reading: Shiba Inu Leads Whale Frenzy: Large SHIB Transfers See Massive 360% Spike Transfers of this type are called exchange inflows. Since one of the main reasons why investors deposit their coins to these platforms is for selling-related purposes, large exchange inflows can lead to a bearish outcome. The three other XRP whale transactions from the past day were also of the same type, with whales shifting a combined $37.9 million to different platforms. It’s possible that these transfers weren’t for selling at all, but for using a different service that exchanges typically provide. Given the corresponding price trend, though, it’s indeed likely that these moves provided a net selling pressure to the cryptocurrency. Featured image from Dall-E, whale-alert.io, chart from TradingView.com

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