Since May 2022, there has been a sharp decline in the value of cryptocurrencies as a result of heightened selling pressure after the Federal Reserve announced and started hiking interest rates.
When Bitcoin holdings are transferred from cold wallets to spot markets, this is sometimes seen as a sign of intent to sell; as a result, supply frequently exceeds demand, which can cause a sharp decline in price.
Notably, between September 7 and September 13, 1.69 million Bitcoin worth $33.5 billion, the greatest amount of BTC moved since October 2021, were transferred to cryptocurrency exchanges.
The most notable weekly surge over the past 11 months occurred during this seven-day inflow into exchanges. Even if the Merge date has finally arrived, some market observers predict a sharp decline in Bitcoin’s price.
A huge increase in exchange inflows following the higher-than-anticipated US Core CPI number led to a 10% drop in the price of Bitcoin in just a few hours. the vast majority of bitcoin transactions occurred between the spot exchange (Coinbase) and the derivative exchange (Huobi), and the majority of the transactions originated from addresses that were between three and six months old according to CryptoQuant data.
The Exchange Whale Ratio has recently increased along with a significant increase in the market’s selling pressure.
On September 14, cryptocurrency market analyst BaroVirtual highlighted that miner transfers to spot exchanges are at an all-time high. Massive miner transfers to spot exchanges are typically accompanied with pressure, such as miners selling out and a decline in the price of BTC.
The number of small Bitcoin holdings had reached a record high as sidelined investors bought the dip, despite the influx of BTC into exchanges. In fact, with 10,702,698, the total number of Bitcoin addresses holding at least 0.01 BTC reached a new record high.
The market is probably waiting for a potential bottom, and recent data show that consumers’ desire to make purchases is declining, which is consistent with the market’s general mood.