Bitcoin price risks ‘major volatility’ as 10K BTC hits exchanges
Bitcoin (BTC) returned to exchanges en masse on July 27 in a sign that “major volatility” could come next.
According to data from on-chain analytics firm Glassnode, intraday BTC exchange inflows have hit multi-month highs.
BTC price action continues to linger below $30,000, and traders have consistently warned that further downside could come next.
At current levels, Bitcoin’s largest-volume investor cohort, the whales, appear to be in a state of flux in an unclear market.
Now, with large tranches of coins on the move in recent days, attention is focusing on entities sending funds to exchanges — with the implication that selling pressure could increase as a result.
As noted by market observers, including James Straten, research and data analyst at crypto insights firm CryptoSlate, over 10,000 BTC in inflows on a single day represented the biggest one-day increase for several months.
“Yesterday, the most amount of Bitcoin went back onto exchanges since the SVB collapse in March,” he commented on July 28.
Straten referenced the fall of Silicon Valley Bank (SVB), which at the time sparked mass market uncertainty.
“Watch out for a spike in volatility!” popular trader Ali continued on the topic, alongside data from research firm Santiment.
Glassnode shows that the changes took the combined BTC balance on the exchanges it monitors back above the 2.25-million mark.
Overall, however, balances remain at multi-year lows, having last circled 2.25 million in March 2018.
Continuing, Straten noted the ongoing influence of the cost basis of various hodler cohorts over BTC price.
Related: Bitcoin bull run next? Bitfinex stablecoin ratio ‘blows up’ in 2023
The cost basis of both short-term and long-term holders, already on the radar at Glassnode
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