Bitcoin
BTC$22 994.25

-3.54%

Ethereum
ETH$1 687.91

-5.10%

Tether
USDT$1.000205

0%

USD Coin
USDC$1.000033

0.02%

Binance Coin
BNB$322.84

-0.68%

Binance USD
BUSD$1.000068

0%

BTC sinks below $40K, Bitcoin inflows to centralized exchanges surge


19 May 2021

#Bitcoin

High Bitcoin inflows to centralized exchanges have prompted predictions of further bearish momentum on social media. Bitcoin inflows to centralized exchanges have surged, prompting bearish speculation the crypto markets could be building up to a violent wash-out.

Lex Moskovoski, CIO at Moskovoski Capital, shared data showing that 22,917 BTC was transferred onto centralized exchanges in a single hour on May 18. Moskovoski noted the hourly inflow was the largest since the March 2020 “Black Thursday” crash.

With outflows from exchanges typically being inferred as indicating crypto assets are being moved into cold storage for security or DeFi protocols for yield generation, inflows are interpreted as assets being moved onto centralized platforms to be sold. Data compiled by on-chain crypto analytics firm Glassnode shows the past two days have seen consecutive all-time highs produced for net transfer volume onto Bitcoin on to leading centralized exchange, Binance. The data was shared by Twitter analyst William Clemente III to his 70,400 followers, triggering bearish price predictions on social media.

The chart indicates roughly 35,000 Bitcoin worth more than $1.4 billion has been deposited on Binance in the past 48 hours. “Feels like capitulation,” said Kraken’s growth lead, Dan Held. Clemente replied: “Let’s see one final nasty liquidation wick.”

Reasons to be cheerful

Despite Bitcoin’s price grinding down to post local lows below $40,000, some analysts are finding reasons to be bullish. 

Popular analyst, Lark Davis, noted the recent downturn has pushed Bitcoin’s 14-day relative-strength indicator into oversold territory for the first time since March 2020, suggesting the crash may be nearing its plateau.

Others are welcoming capitulation as a likely catalyst for a bullish recovery, predicting a swift return to upward momentum once selling has become exhausted.

Twitter user “YHRW80” noted surging flows into Bitcoin’s spot and derivatives markets during 2021, concluding that the dominant emotion gripping the markets is “greed” rather than fear. However, Bitcoin’s Fear and Greed Index disagrees with YHRW80’s analysis, describing current Bitcoin market sentiment as “extreme fear.” 

There was some welcome news today, with Indian media reporting the country's government is set to rethink its planned crypto ban and form a new panel of experts to explore regulating crypto assets in India. Some analysts suggest the catalyst for the surging inflows is tomorrow’s looming deadline for controversial stablecoin issuer Tether to disclose its quarterly financial records as part of its settlement with the New York Attorney General’s office.

Last week, Tether posted a breakdown of its reserves for the first time, asserting three-quarters of the assets backing its stablecoin are cash, cash equivalents, and other short-term deposits and commercial paper.


Related

Bitcoin's bullish stability
Bitcoin's bullish stability
Bitcoin remains in ascending corridor
Bitcoin remains in ascending corridor
Bitcoin retreats from the upper boundary of an uptrend channel
Bitcoin retreats from the upper boundary of an uptrend channel
Musk has clipped the wings of Bitcoin
Musk has clipped the wings of Bitcoin
Crypto's full swing recovery
Crypto's full swing recovery
Blockchain projects are pulling the crypto market up
Blockchain projects are pulling the crypto market up
Bitcoin dipped into a flat
Bitcoin dipped into a flat
Bitcoin benefiting from gains in equities
Bitcoin benefiting from gains in equities
Cryptocurrencies rise after equities
Cryptocurrencies rise after equities

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 80.8% 35 $22 994.25 -3.54% 0.01% $439 591 538 662 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 66% 68 $1 687.91 -5.10% 3.56% $205 761 571 724 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $1.000205 0% 0% $66 531 586 544 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 93.2% 1 $1.000033 0.02% -0.01% $54 021 851 086 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 69.2% 62 $322.84 -0.68% 11.75% $52 086 335 344 BNB 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 90.8% 1 $1.000068 0% 0.01% $17 752 502 175 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 80.4% 36 $0.363424 -3.65% -1.50% $17 569 045 535 XRP 7 days price change
8 Cardano (ADA) ADA Cardano predictions 75.2% 50 $0.511389 -4.25% 1.61% $17 253 774 183 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 78% 44 $39.74 -6.33% 3.54% $13 844 600 613 SOL 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 94.8% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 69.6% 62 $8.71 -4.69% 9.10% $9 626 327 113 DOT 7 days price change
12 HEX (HEX) HEX HEX predictions 64% 70 $0.054592 -1.19% 18.95% $9 466 937 752 HEX 7 days price change
13 Dogecoin (DOGE) DOGE Dogecoin predictions 84% 28 $0.068228 -6.49% 1.79% $9 051 914 563 DOGE 7 days price change
14 Avalanche (AVAX) AVAX Avalanche predictions 70% 55 $27.42 -3.30% 17.24% $7 814 089 843 AVAX 7 days price change
15 Dai (DAI) DAI Dai predictions 93.6% 1 $0.999863 0.05% 0.03% $7 525 054 582 DAI 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.