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Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

Bitcoin Defies Bears: Price Nears $108,000 Despite $250M Exchange Inflows

Keshav Verma
Keshav Verma
1 month ago
2 mins read
Bitcoin

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On-chain data shows the exchanges recently received a large amount of Bitcoin inflows, but so far, the asset’s price has only been going up.

Bitcoin Has Seen A Spike In Exchange Inflows Recently

In a new post on X, the institutional DeFi solutions provider Sentora (formerly IntoTheBlock) has talked about the latest trend in the Exchange Netflow for Bitcoin. The Exchange Netflow is an on-chain indicator that keeps track of the net amount of the asset that’s moving into or out of the wallets associated with all centralized exchanges.

When the value of this metric is positive, it means the exchange inflows outweigh the exchange outflows. As one of the main reasons why investors would deposit their coins to these platforms is for selling-related purposes, this kind of trend can have a bearish impact on the asset’s price.

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On the other hand, the indicator being under the zero mark suggests the holders are taking out a net number of tokens from exchanges. Such a trend can be a sign that the investors are accumulating, which can naturally prove to be bullish for the cryptocurrency.

Now, here is a chart that shows the trend in the Bitcoin Exchange Netflow since the start of the month:

Bitcoin Exchange Netflow
Looks like the value of the metric has surged into the positive zone during the past day | Source: Sentora on X

As displayed in the above graph, the Bitcoin Exchange Netflow has recently mostly been contained in the negative territory, but the latest value (yesterday’s) has been positive.

In total, the investors have deposited a net $262.75 million of the asset to the exchange-connected wallets with this inflow spike. According to the analytics firm, this marks the first day of significant deposits since May 27th.

As mentioned before, exchange inflows are something that can turn out to be bearish for the coin’s value. So far, however, the opposite has happened for Bitcoin, as its price has soared instead.

This could indicate that even if there are some large holders looking to sell with these deposits, enough demand has surfaced at the same time that BTC has not only been able to ride out this wave of potential selling pressure, but actually add to its recovery.

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According to the analytics firm Glassnode, short liquidations have registered a notable uptick alongside this surge in the cryptocurrency.

Bitcoin Short Liquidations
The data related to the futures short liquidations for BTC | Source: Glassnode on X

“Over just 4 hours, total short liquidations spiked from $105K to $359K (24H SMA),” notes Glassnode. Generally, large liquidations end up providing fuel to the price move that caused them, so in this case, it’s possible the short squeeze may have provided support to the Bitcoin rally.

BTC Price

At the time of writing, Bitcoin is floating around $107,900, up over 3% in the last seven days.

Bitcoin Price Chart
The price of the coin seems to have been making recovery | Source: BTCUSDT on TradingView
Featured image from Dall-E, Glassnode.com, IntoTheBlock.com, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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