Huge Bitcoin Inflows To Gemini
Before examining the data, here are some quick definitions for the relevant terms. The exchange inflow is the amount of BTC sent from personal wallets to the exchange platform.
When the value of the netflow is positive, it means more BTC is entering the exchange than exiting. Such a spike would mean that investors want to sell off their Bitcoin, and thus there is a selling pressure in the market.
On the other hand, when this indicator is negative, it implies a buying pressure in the market as more BTC is traveling out of exchanges than in.
The Gemini BTC netflow notices a huge positive spike | Source: CryptoQuant
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The chart also shows that the other big positive netflows also seem to have been followed by drops in the crypto’s price. This does make it seem like there is a correlation between the netflows on Gemini and BTC’s price.
At the time of writing, the Bitcoin price floats around $k, up % in the last 7 days. The cryptocurrency’s gains for the month are around %.
Here is a chart that shows the trend in the price of BTC over the last 24 hours:
BTC witnesses a sharp fall from about $40k to $38k | Source: TradingView
After being range bound for quite the while, Bitcoin finally saw some significant price movement as its price touched $40k. The cryptocurrency has seen 9 up days, something the coin hasn’t seen since 6 years ago.
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In the past, there have been similar instances where Gemini inflows caused sharp downtrends. However, they don’t necessarily mean a drop will happen. It could still be worth keeping an eye on the crypto exchange’s netflow for any possible hints, nonetheless.