Bitcoin (BTC), the world’s largest cryptocurrency, continues to decline at an unprecedented rate. At press time, bitcoin is down 8% to below $31,000 for the first time since July 2021.
On-chain data shows that bitcoin whales are depositing BTC on a large number of exchanges. According to information By cryptocurrencies, all-exchange inflows of bitcoin have reached a 1-year high. Similarly, spot exchange inflows have hit a two-year high.
On-chain data from Sentiment shows that more than 40K bitcoins moved to exchanges on Monday, the largest single-day inflow since December 2019. sentiment notes,
“A milestone in pure bitcoin as Monday crosses into its last trading hour (UTC time)” Have gone to the exchanges. Today’s net total is ~40,620 $BTC Exchange inflows are the biggest spike since December 2019. This is the epitome of maximum crowd polarization.
Massive bitcoin shorts are coming
On-chain data provider sentiment reports That “Funding Rate Data Suggests Massive Shorts Are Coming After Bitcoin fell below $30k for the first time in almost a year”.
Funding rate data indicates a huge amount of shorts coming later #bitcoin Falls below $30k for the first time in almost a year. Our latest video covers it all, trader pain, weak hands getting out, and more while we find out what’s next! https://t.co/KOeItPxg44 pic.twitter.com/afHkpbB5V6
— sentiment (@santimentfeed) 10 May 2022
This means that the carnage on the crypto street won’t stop anytime soon, and investors are in additional pain. On the other hand, the US equity market is showing no signs of reversal and continues to move lower.
The Nasdaq Composite (INDEXNASDAQ:.IXIC) was down 4.29%, down more than 500 points in a single day. The Dow Jones lost 2% and the S&P 500 by 3.2% on Monday.
The broader cryptocurrency is currently down 10% to $1.4 trillion at press time. Terra’s LUNA remains the biggest loser with all the plays losing its dollar peg to the UST stablecoin.
However, during this market crisis, El Salvador announced its largest ever purchase of bitcoin. The Latin American country bought 500 bitcoins worth $15,372,000.
El Salvador just bought Dip! I
~$30,744 . 500 coins at an average USD value of#bitcoin
— nayibbukele (@nayibbukele) 9 May 2022
With its recent purchases, El Salvador has over 2,300 bitcoins.
The material presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for your personal financial loss.