Bitcoin Defies Bears: Price Nears $108,000 Despite $250M Exchange Inflows

[Ben Graham]

On-chain data shows the exchanges recently received a large amount of Bitcoin inflows, but so far, the asset’s price has only been going up.

Bitcoin Has Seen A Spike In Exchange Inflows Recently

In a new post on X, the institutional DeFi solutions provider Sentora (formerly IntoTheBlock) has talked about the latest trend in the Exchange Netflow for Bitcoin. The Exchange Netflow is an on-chain indicator that keeps track of the net amount of the asset that’s moving into or out of the wallets associated with all centralized exchanges.

When the value of this metric is positive, it means the exchange inflows outweigh the exchange outflows. As one of the main reasons why investors would deposit their coins to these platforms is for selling-related purposes, this kind of trend can have a bearish impact on the asset’s price.

On the other hand, the indicator being under the zero mark suggests the holders are taking out a net number of tokens from exchanges. Such a trend can be a sign that the investors are accumulating, which can naturally prove to be bullish for the cryptocurrency.

Now, here is a chart that shows the trend in the Bitcoin Exchange Netflow since the start of the month:

As displayed in the above graph, the Bitcoin Exchange Netflow has recently mostly been contained in the negative territory, but the latest value (yesterday’s) has been positive.

In total, the investors have deposited a net $262.75 million of the asset to the exchange-connected wallets with this inflow spike. According to the analytics firm, this marks the first day of significant deposits since May 27th.

As mentioned before, exchange inflows are something that can turn out to be bearish for the coin’s value. So far, however, the opposite has happened for Bitcoin, as its price has soared instead.

This could indicate that even if there are some large holders looking to sell with these deposits, enough demand has surfaced at the same time that BTC has not only been able to ride out this wave of potential selling pressure, but actually add to its recovery.

According to the analytics firm Glassnode, short liquidations have registered a notable uptick alongside this surge in the cryptocurrency.

“Over just 4 hours, total short liquidations spiked from $105K to $359K (24H SMA),” notes Glassnode. Generally, large liquidations end up providing fuel to the price move that caused them, so in this case, it’s possible the short squeeze may have provided support to the Bitcoin rally.

BTC Price

At the time of writing, Bitcoin is floating around $107,900, up over 3% in the last seven days.