According to data from Glassnode, exchanges registered a single-day net inflow of 30,749.89 bitcoin (BTC), on May 17.
According to data from Glassnode, exchanges registered a single-day net inflow of 30,749.89 bitcoins. This is the fastest inflow of bitcoin exchanges have experienced since “Black Thursday” on May 12, 2020. Bitcoin’s price dropped 40% that day.
Typically, an influx of bitcoin occurs when investors liquidate their positions en masse, or convert their holdings into other crypto. Either way this indicates that people are practically tripping over each other to sell their bitcoin.
The bleeding of bitcoin
Bitcoin has fallen on hard times since Tesla CEO Elon Musk announced it would no longer accept bitcoin as payment. In the day following the announcement, bitcoin fell from $58,000 all the way to a low of $48,600. Since then, the coin has only struggled further. In the past 24 hours alone, bitcoin fell to a low of just over $30,000.
Other indicators also portend poorly for bitcoin. For instance, on May 17, there was also a spike in bearish bitcoin options, according to crypto analytics firm Skew. Roughly $3.5 billion worth of options contracts changed hands that day, compared to under $1.5 billion, on May 14.
This has also drastically affected the whole cryptocurrency market. Registered at $2.5 trillion on May 12, since then the total market cap of cryptocurrencies has tumbled back down to $1.7 trillion. Perennial number two in terms of market cap, ethereum (ETH), has also fallen over 30% in the past week. Although it took a dip on April 26, the Fear & Greed Index for bitcoin is at its lowest level in over a year.
Supporters stay sunny
Still, bitcoin has maintained a devoted group of supporters. For instance, MicroStrategy CEO Michael Saylor reaffirmed his commitment on Twitter. “Entities I control have now acquired 111,000 BTC and have not sold a single satoshi,” he said.
Former Goldman Sachs hedge-fund manager and cryptocurrency bull Raoul Pal still feels confident bitcoin can reach $250,000 or higher. “I think bitcoin goes well above $250,000 in the next twelve months and ethereum well above $20,000” said the CEO of Global Macro Investor.