As the Federal Reserve started its move towards increasing the interest rates due to spiked inflation, it affected the US stock market along with the Crypto market. This led the first cryptocurrency, Bitcoin to start its bearish cycle and lose the $30,000 level as well.
However, as BTC Price struggles to hold $30,000, Santiment, an analytics firm, asserts that massive amounts of Bitcoins are being transferred to exchanges hastily amid the crypto market crash.
According to sentiments, a total of 40,620 Bitcoins has been passed on to the crypto exchanges as the flagship’s price dropped.
At the time of reporting, Bitcoin Price is trading around $31,000 and the total amount of Bitcoin transferred stands at $1.27 billion.
Bitcoin Enters Maximal Crowd Polarization
Explaining further, the analytics firm claims that this is one of the largest numbers of exchange inflows of the firstborn cryptocurrency since December 2019 marking it as the maximal crowd polarization.
In 2021, the Santiment had published a report which claimed that if there is a large uptick in exchange inflows, then the currency is expected to see an average price drop of 5%.
Meanwhile, the data from IntoTheBlock, a crypto analytics firm reveals that there is an exchange outflow of Bitcoin totaling $13.13 billion over the past seven days when in comparison to $12.38 billion in inflows.
On the other hand, Sentiment states that the two largest cryptocurrencies by market cap, Bitcoin and Ethereum are entering the historic buy zone. The firm tweeted that
“Bitcoin’s average profitability levels are the most negative since late January, and Ethereum’s were last this low in early March. Both are very close to dipping into the historic buy zone, where prices see an extremely high probability of a bounce.”
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