U.Today – According to on-chain data provider Lookonchain, a whale or institution has deposited 2,364 (BTC) worth nearly $140 million into one of the world's largest cryptocurrency exchanges, Binance. This massive move, which occurred hours ago, has sparked speculation in the cryptocurrency market.
Deposits on exchanges usually indicate an intention to sell, while withdrawals suggest an intention to buy. It is not known whether this movement indicates a sale or a strategic move.
According to Glassnode’s latest weekly report, net capital inflows into Bitcoin have slowed in recent months, suggesting that a certain degree of balance has been reached between investor gains and losses.
It is worth noting that capital inflows into the Bitcoin market are rarely so quiet: 89% of days see increased capital inflows (excluding loss-dominated bear markets).
After reaching all-time highs of nearly $74,000 in mid-March, new investors’ confidence was tested by a seesaw and sideways price action for several months. Throughout this process, a significant portion of the Bitcoin supply has remained safe and is in the three- to six-month age range.
Bitcoin Price Outlook
According to Glassnode, the market has remained within a structurally ordered downtrend for over five months, followed by a period of consolidation and accumulation.
This view is supported by on-chain analytics firm CryptoQuant, which noted that the Bitcoin market cycle indicator is once again in the bearish phase. This observation was made by CryptoQuant’s head of research Julio Moreno, who also stated that from a valuation perspective, if the Bitcoin price breaks above $56,000 on the downside, there is a risk of a larger correction surge.
At the time of writing, Bitcoin had fallen 1.05% over the past 24 hours to $59,005 amid volatile and sideways trading price action throughout the week. The leading cryptocurrency is trending lower in August, already down 8.44% for the month.
Despite lackluster Bitcoin trading activity, Santiment noted that Bitcoin whales are growing in number. In just one month, there has been a net increase of 283 wallets holding at least 100 BTC, with the current total of 16,120 such wallets on the network, breaking a 17-month high.
This article was originally published on U.Today
