On-chain analysis shows that the cryptocurrency exchange Gemini observed a large amount of Bitcoin inflows before plummeting to $38,000.
A large amount of Bitcoin flows into Gemini
As CryptoQuant pointed out postalEarlier today, the cryptocurrency exchange Gemini saw a large inflow of funds, resulting in a positive surge in net traffic.
Before examining the data, here are some quick definitions of related terms. Transaction inflow refers to the amount of BTC sent from the personal wallet to the trading platform.
Similarly, the outflow is the BTC transferred from the exchange to the personal wallet.This Network traffic It’s just the difference between the inflow value and the outflow value.
When the net flow is positive, it means that more BTC entered the exchange than BTC exited. Such a surge means that investors want to sell their bitcoins, so there is selling pressure in the market.
On the other hand, when the indicator is negative, it means that there is buying pressure in the market, because the amount of bitcoin flowing out of the exchange is more than that flowing into the exchange.
Now, this is the Bitcoin network traffic graph Gemini cryptocurrency exchange looks like:
The Gemini BTC netflow notices a huge positive spike | Source: CryptoQuant
As shown in the picture above, Gemini has just witnessed a surge in Bitcoin network traffic. Interestingly, after these capital inflows, the price of BTC plummeted from less than $40,000 to $38,000.
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The chart also shows that other large positive net flows appear to have been accompanied by a decline in the price of cryptocurrencies. This does make it seem that there is a correlation between Gemini’s net traffic and the price of BTC.
At the time of writing, Bitcoin price Floating around $k in the past 7 days, up by %. This month’s cryptocurrency gains are about %.
This is a chart showing the price trend of BTC in the past 24 hours:
BTC witnesses a sharp fall from about $40k to $38k | Source: TradingView
After a period of interval fluctuations, Bitcoin finally saw some major price changes, as its price reached $40,000. The cryptocurrency has risen for 9 days, which is something the coin has not seen since 6 years ago.
However, it seems that BTC has finally fallen a bit today, so today will not be a positive day. As mentioned earlier, this plunge to $38,000 may be due to the influx of Gemini.
In the past, similar situations have occurred, where the inflow of Gemini funds led to a sharp downward trend. However, they do not necessarily mean that a decline will occur. Nevertheless, it is still worth paying attention to the network traffic of cryptocurrency exchanges for any possible hints.