Bitcoin Turns Bearish As Whales Sell-Off On Gemini

Keshav Verma

1 year ago

3 mins read

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On-chain data may suggest huge Bitcoin inflows to crypto exchange Gemini might be the reason behind the recent dip.

Huge Bitcoin Inflows To Crypto Exchange Gemini

As pointed out by a CryptoQuant post, these BTC inflows to Gemini might be the reason for the current downwards trend in the crypto’s price.

The Bitcoin inflow is an indicator that shows the amount of BTC transferred into exchange wallets. The opposite metric is called the outflow.

The difference between the inflows and outflows gives the exchange netflow. When this indicator’s value is positive, it means inflows are outweighing outflows.

While on the otherhand, if the netflow is negative, it implies more Bitcoin is moving out of exchanges than in. Now, here is a chart for the BTC Gemini netflow:

Gemini received huge inflows shortly before the price dip | Source: CryptoQuant

As the graph shows, the BTC price started moving down as soon as Gemini started noticing negative spikes in the netflow.

The reason behind the dip is that big inflows mean whales are sending their coins to the exchange for selling purposes/altcoin purchasing.

However, as the graph shows, big inflows aren’t the only necessary condition for the price to go down. There are two other indicators that influence the price, namely the BTC spot reserves and the stablecoins issued metric.

The spot reserves is the total amount of Bitcoin in wallets of all exchanges. If the value of this indicator moves up, it means exchanges across the board are noticing large inflows.

On the contrary, if the spot reserves move down, it means exchanges are overall observing higher outflows. Looking at the above chart, spot reserves moving up seems to cause a drop in the price, as expected.

The graph also shows that if Gemini receives large inflows while the spot reserves go down, the price isn’t negatively affected. Similarly, large amounts of stablecoins being issued also seems to cause a similar effect.

BTC Price

At the time of writing, Bitcoin’s price is around $44k, up 8% in the last 7 days. Over the past month, the cryptocurrency has amassed 34% in gains.

Below is a chart showing the changes in the coin’s value over the past three months:

BTC's price seems to be crashing down | Source: BTCUSD on TradingView

After peaking not too far from the $47k price mark, Bitcoin seems to be sharply moving downwards. As explained above, this could be related to the inflows to Gemini.

Some signs still seem to be bullish for the crypto so it’s hard to say which direction it will go in next. However, if such inflows continue, there could be a bear market ahead.

Keshav Verma

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

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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