Bitcoin (BTC) could be on the verge of a major retail sell-off as the exchange’s fund inflows jumped to nearly a three-and-a-half-year high.

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Data from the on-chain analytical platform CryptoQuant shows users of 21 major exchanges mass sending coins to their wallets on June 14th.

Major exchanges complete 83,000 BTC in one day

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As BTC/USD dropped to a low of $20,800, there seemed to be a panic among traders, and despite a reversal that topped $23,000 at one point, few seemed willing to believe the worst was over.

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Since then, the spot price has returned to almost $21,000 and the 24-hour exchange inflow has reached 59,376 BTC.

According to CryptoQuant, this is the largest daily inflow since November 30, 2018. Exchanges recorded 83,481 BTC net inflows that day.

May 9, 2022 ended with a net inflow of 29,082 BTC for platforms controlled by CryptoQuant.

As such, there may now be concerns about whether there will be even more selling pressure in the bitcoin markets in the coming days and weeks. About a month after the 2018 influx, BTC/USD hit its cycle bottom of $3,100, 84% off its previous all-time high of $20,000.

Graph of the network flows of the bitcoin exchange. Source: CryptoQuant

As reported by Cryptooshala, analysts are ambivalent about whether Bitcoin will repeat this trend in this cycle. An 84% drawdown would mean a bottom of just $11,000.

In a separate analysis of the price situation, statistician Willy Wu concluded that market macro dynamics will determine the bottom of Bitcoin.

“I think it’s easier IMO, we’ll find a bottom when the macros stabilize,” part of a Twitter thread looking at various price support theories. read.

FTX, Binance See Particularly Active Selling

Meanwhile, in analyzing who has been selling so far, CryptoQuant CEO Ki Yong Joo has pointed the finger at derivatives traders and the world’s largest exchange, Binance.

‘Too Early’ To Say Bitcoin Price Recovered Key Bear Market Support – Analysis

Key noted that the largest number of days of destroyed coins—unmoved coins that became active after a period of inactivity—came from these specific locations.

“This selling pressure came from Binance and FTX,” he wrote on Thread on Twitter June 13th.

“$BTC (Coins Days Destroyed) Exchange Influx CDD Indicates Old Whale Deposits. CDD Inflow on Binance hit yearly high before crashing.”

Bitcoin Days Destroyed for Binance, FTX (screenshot). Source: Ki Young Joo/Twitter

Key added that this was in contrast to other whales, who were relatively calm during the price spike that began with the Terra LUNA explosion in May.

On-chain analytical resource data coin glass meanwhile shows the degree of bias on FTX, especially in recent days.

Bitcoin recharge rates for Binance, FTX. Source: Coinglass

The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Every investment and trading step involves risk, you should do your own research when making a decision.