Bitcoin Exchange Inflows Rise to Highest Levels of 2021: Why It Matters

As Bitcoin extended its losses from the previous week, its inflows to cryptocurrency exchanges surged to the highest levels seen in a year — perhaps a telling sign that institutional and retail investors are liquidating their positions en-masse. 

Bitcoin (BTC/USD) is now down over 25% in the past week alone.

With a relative strength index (RSI) of 24.03, Bitcoin was being oversold at rates not seen before in the current cycle.

Despite Elon Musk’s attempts for damage-control, Bitcoin has continued to slide — breaking its key support levels and spiraling below $40,000. What’s interesting, however, is that net inflow volume reversed to negative on Tuesday. 

Upon a closer look, outflow volumes remained steady across the two days, dropping from 74,502 to 64,623 BTC. Inflow volumes, on the other hand, dropped by approximately 50% — from 106,326 to 51,917 BTC.

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