Institutional and retail crypto selling has increased during the last few days after Bitcoin failed to break above $45,000. According to the data posted by Coinglass, $25 million worth of long Bitcoin trading positions got liquidated yesterday.
On Monday, BTC’s market cap also dropped below $800 billion. As far as BTC’s weekly performance is concerned, the world’s largest cryptocurrency has lost nearly 10% of its value. Despite rising institutional inflows during the first week of April, Bitcoin failed to escape the recent selling pressure.
“The world’s largest crypto asset began last week above $45,000 but slid across the week to now trade below $42,000. The moves down underpin what has emerged as a significant trend in 2022, that the crypto-assets don’t appear immune to rate hike environments. Moving to a similar beat to traditional stock markets such as the NASDAQ100, crypto appears to be struggling under an increasing rate environment,” Simon Peters, a Market Analyst at eToro, said in a recent note.
“Bitcoin is still in the upper half of the range it has traded in 2022, meaning if it can hold its level above $40,000, then confidence could return to the market. What is clear is the ebullience of the past few weeks led to the token being overbought, and is now suffering the consequences of that,” he added.
Exchange Flows
Bitcoin exchange flows have been in the spotlight for the past few months. Due to rising outflows, exchange supply at the world’s leading digital exchanges has dropped to historically low levels. Last week, investors moved $6.6 billion worth of BTC away from exchanges. However, due to the recent price dip, daily average BTC exchange inflows rose marginally.
According to Glassnode, BTC’s daily on-chain exchange inflows stood at $667 million yesterday, compared to the outflows of $530 million.
