Bitcoin has observed a plunge to the $59,000 level during the past day. Here\u2019s what could be behind it, according to on-chain data.<\/p>\n
In a new post<\/a> on X, CryptoQuant Head of Research Julio Moreno\u00a0discussed the latest trend in\u00a0Bitcoin Exchange Inflow.\u00a0Exchange Inflow<\/a>\u00a0is an on-chain metric that tracks the total amount of assets\u00a0being transferred into the wallets of centralized exchanges.<\/p>\n Investors deposit many coins on these platforms when this indicator\u2019s value is high. One of the main reasons holders may transfer to exchanges is for selling-related purposes so this trend can have bearish consequences for BTC\u2019s value.<\/p>\n On the other hand, the low metric implies holders aren\u2019t moving that many coins from self-custody into exchanges, which, depending on whether outflows are also occurring, can potentially be bullish for the cryptocurrency.<\/p>\n Now, here is the chart shared by Moreno that shows the trend in the Bitcoin Exchange Inflow over the past few days:<\/p>\n As displayed in the graph at the top, the Bitcoin Exchange Inflow saw some notable spikes in the lead-up to the latest price plunge<\/a>. The version of the indicator in the chart is specifically for the spot platforms, so selling was likely the goal of the investors making these deposits.<\/p>\n The CryptoQuant head has also attached the data for another metric: the Spent Output Value Bands version of the Exchange Inflow, under the chart for the Exchange Inflow.<\/p>\n This indicator shows how the Exchange Inflow breaks down according to the transactions\u2019 size. In the graph, Moreno has specifically highlighted the 1,000 to 10,000 BTC value band, corresponding to addresses carrying between 1,000 and 10,000 tokens in their balance.<\/p>\n