Analytics firm Santiment says leading digital asset Bitcoin (BTC) is being moved onto exchange platforms at a rapid rate amid a sharp crypto market downturn.
Santiment notes a net sum of about 40,620 BTC moved onto crypto exchange networks as prices cratered this week.
With Bitcoin trading around $31,000 at time of writing, that total amount moved is currently worth a staggering $1.27 billion.
The market intelligence firm says this marks the largest spike in net exchange inflow of the top crypto asset by market cap to exchange platforms since December 2019, marking “maximal crowd polarization.”
Large upticks in exchange inflows tend to lead to an average price drop of 5% for crypto assets, according to a 2021 study published by Santiment.
Crypto analytics firm IntoTheBlock reports that Bitcoin witnessed a total of $13.13 billion in exchange outflows in the past seven days, compared to $12.38 billion in inflows.
However, it’s not all bearish indicators for the king crypto as both it and leading smart contract platform Ethereum (ETH) are dipping into the “historic buy zone,” according to Santiment.
“Bitcoin’s average profitability levels are the most negative since late January, and Ethereum’s were last this low in early March. Both are very close to dipping into the historic buy zone, where prices see an extremely high probability of a bounce.”
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Source: https://dailyhodl.com/2022/05/11/1270000000-in-bitcoin-moved-to-crypto-exchanges-as-btc-struggles-above-30000-analytics-firm/