Last week’s rollercoaster continues to impact the cryptocurrency market in one or more ways, as IntoTheBlock data indicated that approximately 40,000 BTC had made their way into exchanges since May 11. While this has increased the selling pressure, there’s some good news since bitcoin actually managed to remain above $28,000, which was a pivotal mark.
40K BTC Deposited to Crypto Exchanges in a Week
After weeks of being unable to break above $40,000, bitcoin reversed its trajectory last week amid the Terra-Luna-UST fiasco and slumped by $15,000 at one point to its lowest price position since late December 2020 at $25,300.
This led to mass panic in the markets, with the Fear and Greed Index showing the most intense levels of “extreme fear” since the COVID-19 collapse.
Naturally, many investors rushed to deposit their holdings in exchanges, typically regarded as a bearish development. According to data from IntoTheBlock, about 40,000 BTC were sent to trading platforms. The analytics platform asserted that this coincided with “the downwards sell pressure that we have been experiencing.”
Despite this increased selling pressure, though, the company revealed that bitcoin “has been able to sustain above $28K.” Moreover, the cryptocurrency even spiked to above $31,000 a few days ago but was unable to continue upwards.
$BTC deposit into exchanges has increased dramatically since May 11th.
Roughly 40,000 BTC has been spotted as inflows into exchanges. This coincides with the downwards sell pressure that we have been experiencing.
Despite this, #Bitcoin has been able to sustain above $28k. pic.twitter.com/d8fW5Y8UEc
— IntoTheBlock (@intotheblock) May 18, 2022
Retail Bought the Dip
During such extreme cases of enhanced volatility, in which BTC loses more than 30% of its value in days, retail investors typically flock the scene. However, this doesn’t seem to be the case this time, shows more data from IntoTheBlock.
Addresses holding BTC for less than 30 days started increasing on May 8 and have continued to do so. The company admitted that these entities usually “follow the price action and sell at a loss, but they increased their balance from 1.47m BTC to 1.78m BTC in 7 days.”
Retail has been buying the $BTC dip.
The balance held by traders – addresses holding <30 days, has been increasing since May 8th.
These addresses historically follow the price action and sell at a loss, but they increased their balance from 1.47m BTC to 1.78m BTC in 7 days. pic.twitter.com/qhluqo8QDj
— IntoTheBlock (@intotheblock) May 18, 2022
It’s worth noting that it wasn’t just retail who bought the dip this time. El Salvador, the first nation to legalize BTC, accumulated 500 more of the asset during the most recent pullback.
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