Bitcoin Selloff: $2.2 Billion Floods Exchanges Amid Price Dip Recent on-chain data reveals a significant influx of Bitcoin (BTC) onto cryptocurrency exchanges, with a staggering $2.2 billion worth of the digital asset transferred to these platforms over the past two weeks. This substantial movement is identified as a key factor contributing to Bitcoin's recent bearish price action, prompting close scrutiny from market analysts.
Unpacking the "Supply on Exchanges" Trend
Analyst Ali Martinez highlighted the "Supply on Exchanges" metric, an on-chain indicator that tracks the total amount of Bitcoin held in wallets connected to centralized exchanges. A rising value in this metric typically signals that holders are moving their tokens to exchanges, often with the intention to sell. The recent surge saw approximately 20,000 BTC, valued at an estimated $2.2 billion at current exchange rates, flowing into these platforms. This coincided directly with a decline in Bitcoin's price, reinforcing the interpretation that these deposits were largely driven by selling pressure.
Short-Term Holders and Market Bottoms: A Deeper Look
Further analysis of exchange inflows showed a notable spike during a recent weekend, which was quickly followed by a continued depreciation in Bitcoin's value. Interestingly, the overall "Supply on Exchanges" did not see a proportional increase during this inflow surge, suggesting that there was sufficient demand to absorb the deposited cryptocurrency and prevent an even sharper drop. Additionally, data indicates that Bitcoin's short-term holders (STHs), defined as those who purchased BTC within the last 155 days, have been making significant loss-making deposits to exchanges. Historically, such capitulation events by STHs often precede market bottoms, as weaker hands are flushed out, paving the way for more resilient accumulation. At the time of reporting, Bitcoin's price is hovering around $110,500, having registered a more than 2.5% decrease over the past week.
