Bitcoin’s (BTC) price action has been negative since the start of the week, and data shows that over 63,000 BTC, valued at approximately $1.83 billion, was sent to crypto exchanges beginning on Oct. 7, 2024.
According to data from CryptoQuant, roughly 28,000 BTC was sent to exchanges on Oct. 7, an additional 23,500 BTC was transferred to exchanges on Oct. 8, and roughly 12,000 coins made their way to exchanges on Oct. 9.
While exchange inflows do not necessarily translate into immediate selling pressure, high inflows indicate that investors may be prepared to sell in the near future. Typically, investors would not transfer large sums of digital assets from cold storage to exchange wallets unless they intend to liquidate those assets.
Bitcoin exchange inflow. Source: CryptoQuant
Bitcoin slumps for the week
Bitcoin started the week trading at over $64,000, but fell to approximately $62,000 by the end of the trading day on Oct. 7.
The decentralized currency also recorded red candles for the next three trading days and broke below its 200-day exponential moving average — a dynamic level of support — on Oct. 10.
Macroeconomic factors were partly responsible for Bitcoin’s downward price action this week, as markets processed higher-than-expected inflation data and an uptick in jobless claims.
Current BTC price action. Source: TradingView
Glassnode analyst James Check believes Bitcoin must escape the $60,000 range to spark new investor interest and experience new highs. Other analysts believe that the price of Bitcoin will sharply decline and reach lows under $50,000 before the price begins to rebound.
However, reclaiming new all-time highs may prove easier said than done. Bitcoin reached an all-time high of roughly $74,000 in March 2024, but has not managed to reclaim that level and has been trading sideways since March.
Silk Road fears loom over the market
On Oct. 7, the United States Supreme Court declined to hear the Battle Born Investments vs United States lawsuit.
The plaintiffs in the case argued that they had a rightful claim to 69,370 Bitcoin, valued at roughly $4.38 billion, originally purchased through a bankruptcy claim. By declining to hear the case, the Supreme Court has removed any impediments for the government to sell the Bitcoin seized through the Silk Road raid.
The confiscated Silk Road holdings. Source: Arkham Intelligence.
Investors fear that a potential sell-off by the United States government will place even more downward pressure on the price of Bitcoin. However, data from Arkham Intelligence revealed that the 69,370 Bitcoin has not yet moved.
Magazine: TradFi fans ignored Lyn Alden’s BTC tip — Now she says it’ll hit 7 figures: X Hall of Flame
