Bitcoin [BTC] made a history; increased volatility is expected

santiment bitcoin
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The latest data shows that a large amount of BTC has moved to exchanges that show a new record and may result in more volatility. The data by Santiment suggests that an increased inflow of Bitcoin to exchanges can affect the market and result in big sales or even buys.

These kinds of changes in inflow have always had effects, but we should consider many other things before concluding an increased or decrease volatility. Anyhow, BTC price decreased to below $50K in the past days after showing a good momentum for some days. The coin is now being traded at $47K.

What Will Happen Next?

Analyzing the cryptocurrency market has always been hard and depends on numerous factors. Fundamental analytics that relies on market changes and news tend to be more reliable, but no expert trader trusts them for sure. There are numerous elements that affect the fundamental analysis.

In the crypto market, the inflow and outflow of BTC in exchanges are two of the important indicators. When the inflow increases, we can conclude that big holders are considering selling their assets that may decrease the price. On the other hand, with an increased outflow, we can consider that most traders are going to be holders, and we can expect price increase or stability.

The latest data from Santiment shows that we have had a record in terms of BTC inflow in the past few days. According to their tweet:

“#Bitcoin just made history with its largest day of exchange inflow since June 19, 2019. These days are now tied for the largest inflow day of all time, both with 1.68M $BTC flowing to exchanges on these respective days. Expect increased volatility.”

As you can see, Wednesday’s BTC inflow has been the largest in its history. 1.68M $BTC is absolutely a big number and can affect the market, even resulting in big changes. Anyhow, Santiment analysts believe that this past incident is the reason BTC has declined and came from above $50K to currently trading at $47K.

A large amount of BTC that has come to exchanges may move the market in many directions. As the analysts predict, we can expect volatility. But these predictions don’t say which direction the volatility is moving toward. It can result in exchanging BTC to altcoins that will surely start a long alt season.

In another prediction, the inflowed BTC may be sold for US Dollar or other fiat money that results in a price decrease for BTC. Anyhow, we should wait for the market reaction to this news and coming changes.

If you found this article interesting, here you can find more Bitcoin news


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