Originally published on: October 10, 2024
Bitcoin’s price has taken a nosedive this week, with an astonishing 63,000 BTC, valued at $1.83 billion, flooding into cryptocurrency exchanges since Oct. 7, 2024, according to data from CryptoQuant.
The influx of roughly 28,000 BTC on Oct. 7, followed by 23,500 BTC on Oct. 8, and an additional 12,000 coins on Oct. 9, suggests that investors might be gearing up to sell soon. Transferring significant amounts of digital assets from cold wallets to exchanges often indicates an intention to liquidate those assets.
Despite exchange inflows not immediately correlating with selling pressure, the substantial movement of BTC raises concerns among traders. Following an initial drop from over $64,000 to around $62,000 on Oct. 7, Bitcoin continued to see bearish price action throughout the week. The cryptocurrency even breached its 200-day exponential moving average on Oct. 10.
Macro factors, including elevated inflation rates and an increase in jobless claims, have played a role in Bitcoin’s recent downtrend. Analysts suggest that Bitcoin must break free from the $60,000 range to reignite investor interest and push towards new highs, while others predict a potential dip below $50,000 before any rebound.
The U.S. Supreme Court’s decision not to review the Battle Born Investments vs United States case regarding the seizure of 69,370 BTC from the Silk Road has further fueled uncertainty. Investors fear that a government sell-off of the confiscated Bitcoin could add more downward pressure to the market, although reports indicate that the Bitcoin holdings have yet to move.
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