Bitcoin prices have been almost quiet since reaching current all-time highs at the $123,000 level. Over the past week, the best cryptocurrencies have mainly danced between the $117,000-120,000 range, struggling to exceed $119,000 during this period.
However, Bitcoin prices drifted out of their comfort zone to close the week on Friday, July 25th, shutting down the week and dropping to a new weekly low of over $115,000. The latest on-chain data provided insight into the key drivers behind the latest fixes for market leaders.
Is BTC at risk as large players benefit?
In a post on the encrypted platform’s Quick Take, CaueConomy, a pseudonymous analyst, revealed that cryptocurrency exchanges have seen an increase in activity over the past day. Recent chain revelations show that 40,000 BTC reached these centralized platforms on Friday.
This on-chain observation is based on Bitcoin Exchange Inflow – used output value bands and tracks the amount of Bitcoin usage that flows into central exchanges at a given time. This metric provides insight into the various investor cohorts that contribute most to exchange inflows.
Source: CryptoQuant
As shown in the chart above, this metric has witnessed a significant surge in past days. This is not surprising. As Bitconist reported earlier on Friday, the Galaxy Digital moved the 32.448 BTC (valued over $3.7 billion), a significant portion (22,700 BTC) goes to exchange.
CaueConomy highlighted that the massive coin movement seen on Friday is linked to profitability by large players in the market. “OTC desks are also attacking order books on these platforms,” added an analyst on the chain.
One service known to be provided by central exchange is the buying and selling of cryptocurrency. Thus, an increase in cryptocurrency flow (in this scenario, Bitcoin) is often correlated with an increase in sales pressure.
However, CaueConomy pointed out that Bitcoin’s price is still far above the $110,000 level, so it’s not yet a bleak thing for the flagship cryptocurrency. Ultimately, this trend suggests that net purchase interest is the dominant market force in the medium term.
Bitcoin price at a glance
At the time of writing, BTC priced around $117,346, reflecting a decline of over 0.2% over the past 24 hours. Market leaders have fallen nearly 1% over the past seven days, according to Coingecko data.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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