On-chain data suggests a majority of the Bitcoin exchange inflows are currently coming from investors holding their coins at a loss.Bitcoin Exchange Inflow Volume Is Tending Towards Losses Right Now According to data from the on-chain analytics firm Glassnode, the short-term holders are mostly contributing to these loss inflows.The “exchange inflow” is an indicator that measures the total amount of Bitcoin that’s currently flowing into the wallets of centralized exchanges.Generally, investors deposit to these platforms whenever want to sell, so a large amount of inflows can be a sign that a selloff is going on in the BTC market right now.Low values of the metric, on the other hand, imply holders may not be participating in much selling at the moment, which can be bullish for the price.In the context of the current discussion, the exchange inflow itself isn’t of relevance; a related metric called the “exchange inflow volume profit/loss bias” is.As this indicator’s name already suggests, it tells us whether the inflows going to exchanges are coming from profit or loss holders currently.
When this metric has a value greater than 1, it means the majority of the inflow volume contains coins that their holders had been carrying at a profit.Similarly, values under the threshold imply a dominance of the loss volume.Now, here is a chart that shows the trend in the Bitcoin exchange inflow profit/loss bias over the last few years: The value of the metric seems to have observed some decline in recent days | Source: Glassnode on Twitter As shown in the above graph, the Bitcoin exchange inflow volume profit/loss bias has had a value above 1 for most of the ongoing rallies that started back in January of this year.
This suggests that most of the exchange inflows in this period have come from the profit holders.This naturally makes sense, as any rally generally entices a large number of holders to sell and harvest their gains.
There have been a couple of exceptional instances, however.The first was back in March when the asset’s price plunged below the $20,000 level.The bias in the market shifted towards loss selling then, implying that some investors who bought around the local top had started capitulating.A similar pattern has also occurred recently, as the cryptocurrency’s price has stumbled below the $27,000 level.
Following this plunge, the indicator’s value has come down to just 0.70.Further data from Glassnode reveals that the bias of the long-term holders (LTHs), the investors holding their coins since at least 155 days ago, have actually leaned towards profits recently.Looks like the indicator has a positive value right now | Source: Glassnode on Twitter From the chart, it’s visible that the indicator has a value of 1.73 for the LTHs, implying a strong bias toward profits.Naturally, if the LTHs haven’t been selling at a loss, the opposite cohort must be the short-term holders (STHs).
This group seems to have a heavy loss bias currently | Source: Glassnode on Twitter Interestingly, the indicator’s value for the STHs is 0.69, which is almost exactly the same as the average for the entire market.This would mean that the LTHs have contributed relatively little to selling pressure recently.The STHs selling right now would be the ones that bought at and near the top of the rally so far and their capitulation may be a sign that these weak hands are currently being cleansed from the market.Although the indicator hasn’t dipped as low as in March yet, this capitulation could be a sign that a local bottom may be near for Bitcoin.
BTC Price At the time of writing, Bitcoin is trading around $26,400, down 1% in the last week.BTC has struggled recently | Source: BTCUSD on TradingView Featured image from 愚木混株 cdd20 on Unsplash.com, charts from TradingView.com, Glassnode.com Leave a Reply [Cancel reply](/bitcoin/bitcoin-exchange-inflows-mostly-coming-from-loss-holders-weak-hands-exiting/#respond) Leave a Reply Bitcoin Are BTC miners back on their feet? This data suggests… – Bitcoin miners show faith in Bitcoin as their BTC holdings start to grow.Revenue generated rises, however, the difficulty rises alongside.- Traders become optimistic as put to call ratio begins to decline.
Due to the extremely volatile nature of the price of Bitcoin [BTC], revenues generated by miners have fluctuated massively.Because of this, large Bitcoin miner outflows occurred in the latter half of 2022.
However, as Q3 2023 inches near, miners have started to turn optimistic.Read Bitcoin’s [BTC] Price Prediction 2023-2024 Miner balance turns green The indication of miners’ confidence in Bitcoin was demonstrated by the expansion of their balance sheet through the acquisition of an additional 8.2K BTC.As a result, their total holdings have grown to reach 78.5K BTC according to Glassnode’s data.The fact that miners have been able to increase their holdings by acquiring additional BTC suggested continued confidence in the cryptocurrency.This can be seen as a positive indicator for the broader Bitcoin market, as it signifies ongoing interest and support from miners who play a crucial role in securing and maintaining the Bitcoin network.
The rising miner revenue also contributed to the positivity showcased by miners.
In the last three months, the daily revenue generated by miners has grown significantly from $21,370 to $27,253.During the same period, there was a significant increase in mining difficulty.When Bitcoin mining difficulty reaches new highs, it indicates a heightened level of competition among miners, leading to increased computational power and network security.This trend also highlights the significant resource investment required for mining, potentially impacting block generation rates and the overall supply dynamics of the cryptocurrency.
Traders make their predictions Even though the rise in difficulty may pose challenges in the future for miners, their growth also largely depends on Bitcoin’s price.At press time, Bitcoin was trading at $26,463.66 according to CoinMarketCap’s data.
Trader behavior suggested that they were optimistic about BTC’s price and expected it to go up further.Is your portfolio green? Check out the Bitcoin Profit Calculator At the time of writing, there were 86,000 BTC options set to expire soon.These options have a Put Call Ratio of 0.38, which means that there are more bullish (Call) positions than bearish (Put) positions.
The maximum pain point, a price level where option holders would experience the most financial loss, is estimated to be around $27,000.In total, these options hold a notional value of approximately $2.26 billion.All Will This Political Deal In The US Save Bitcoin and Crypto? Politicians in the United States will likely strike a deal and raise the government’s $31.4 trillion debt ceiling for two more years.Amid this debate, the price of Bitcoin is firm but lower, tracking below the psychological $30,000 level as bulls recover after posting sharp losses mid-this week.
The Debt Ceiling Debate There are reports that there will be more discretionary spending on the military and veterans with the reduction of other sectors.Moreover, there are unconfirmed reports that the Biden administration will likely not fund the Internal Revenue Service (IRS) to boost collection, as laid out earlier.Instead, the immediate focus will be to hire more auditors and target wealthy citizens.There are concerns that the Treasury Department and the United States government will default on their obligation as soon as the first half of June 2023.Even though highly unlikely, as the Treasury Department has said it will liquidate $119 billion of debt on that day, the market is watching how discussions pan out.
Bitcoin is firming up after losses on May 24.As a deal is reportedly struck and consensus reached, politicians would once again lift the debt ceiling, sending mixed signals to the economy.
Unlike in previous years when top cryptocurrencies were decoupled from the mainstream economy, things have changed as Bitcoin’s prominence rises.Will Bitcoin Benefit? BTC prices will likely rally if there is an instance of default brought about by politicians disagreeing on the way forward.On the reverse side, a deal that addresses concerns brought by the negotiating parties could signal confidence in the economy despite more debt on the table.This averts a crisis and keeps operations running, removing uncertainty and stabilizing the economy.
In that case, the USD could strengthen, possibly reversing gains by Bitcoin bulls in the last two trading days.Still, the crypto community remains bullish on Bitcoin considering macroeconomic events and next year’s halving.After months of steady interest rate hikes, the United States Federal Reserve could slow down rate increments in the next meeting in mid-June.Their action could support the commodities and securities markets.
At the same time, the expected supply shock following the halving of Bitcoin miner rewards could make BTC scarcer, driving prices even higher.Miners are special nodes tasked with confirming transactions and decentralizing the network.If past price action can be used to predict future formations, BTC’s prospects look positive.Before the rally of 2020 to 2021, BTC prices bottomed up in 2018 and rose in 2019 before the halving event 2020.The same pattern may be repeated through to 2024 when Bitcoin halving occurs.Feature Image From Canva, Chart From TradingView Dalmas Ngetich Dalmas is a crypto reporter covering NFTs, blockchain, DeFi, and blockchain news for NewsBTC.
He’s part of a team of talented team working on bringing latest crypto development across the board.Dalmas is also the ex-founder of btc-pulse.com, a crypto news outlet.
Dalmas has over 10 years of experience covering Forex, general finance, technology, and blockchain developments.His work and that of his partners has been featured in top news outlets including investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites.He’s passionate about technology and politics.When he’s not keeping tabs on crypto events, you’ll find him out in nature, exploring and traveling with family and friends.You can follow Dalmas on Twitter @Dalmas_Ngetich or ping him on Telegram @Dalmas_Ngetich Bitcoin Even Biden’s Re-election Can’t Threaten Bitcoin, Claims Pro-XRP Lawyer In a striking declaration today, a distinguished attorney known for his fervent advocacy for Ripple’s digital currency, XRP, stated emphatically that the re-elected Biden Administration lacks the authority to “kill” Bitcoin.
John E.Deaton, a recognized pro-XRP attorney, stirred conversation this week with a provocative assertion: a potential second term for President Biden holds no sway over the indomitable nature of Bitcoin.Deaton’s Bold Assertion: Biden And Bitcoin In a public response to a Forbes piece, the noted pro-XRP lawyer and crypto supporter, John E.Deaton, emphasized that even if President Biden were to secure a second term in the 2024 U.S Presidential elections, it would not signify the end for Bitcoin (BTC), the most prominent and sizable cryptocurrency.Deaton aired his thoughts on Twitter, countering an assertion made by Florida’s Governor and Presidential Candidate, Ron DeSantis, who suggested that “the current regime clearly has it out for Bitcoin.” Florida’s Governor Ron DeSantis, during his presidential bid declaration on Twitter, firmly underscored the importance of cryptocurrency as a central political topic.“The current regime seems to be against Bitcoin,” DeSantis stated, “and if it persists for the next four years, it might indeed lead to its demise.” Deaton, on the other hand, interprets DeSantis’ comments as politically motivated, aiming to curry favor and attract financial backing from the Bitcoin community.His viewpoint could be rooted in the understanding that Bitcoin’s surging popularity and market value have positioned it as a formidable player in the financial and tech arenas.
Therefore, it might be advantageous for politicians to affiliate themselves with this burgeoning sector.Moreover, Deaton underscores the critical importance of politicians comprehending the core technology that powers cryptocurrencies like Bitcoin.Such understanding is key if they are to draft informed policies and regulations concerning this rapidly evolving industry.Without a firm grasp of the technology, the task of creating meaningful legislation or understanding the long-term opportunities and risks associated with cryptocurrencies becomes significantly more difficult.
Friendly Opinions Of DeSantis On Crypto Florida Governor Ron DeSantis has consistently championed the importance of nurturing creativity and pushing the boundaries of technological advancements in the financial arena.This includes exciting sectors like cryptocurrencies and the underlying blockchain technology.DeSantis recognizes the vast economic potential that digital assets bring to the table and has articulated his objective of cultivating a business environment conducive to the growth and success of the Bitcoin industry.In the Governor’s view, money, as a tool of exchange, wields considerable influence.Any innovative development that has the potential to disrupt entrenched power dynamics inevitably commands attention, sparking spirited debates in political circles.DeSantis went further to stress the core philosophy of Bitcoin, which serves as a decentralized counterpoint to traditional, centralized currencies.This inherent characteristic of Bitcoin challenges the status quo of existing political and economic frameworks, inevitably eliciting a range of reactions and interpretations among political leaders.Was this writing helpful? No Yes Shayan Chowdhury Shayan is a digital nomad and a professional journalist.
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