On-chain data shows another warning sign for Bitcoin. The price of Bitcoin could fall further to $15,000 as mid-term Bitcoin holders who purchased in the last three to six months are sending their Bitcoin holdings to crypto exchanges. Bitcoin fell to $15,682 on Thursday, and the hug tightened as a result.
The crypto market continues to be under pressure as the FTX-Alameda crisis continues. The FTX contagion has started to spread with cryptocurrency lender BlockFi halting withdrawals and FTX US facing trading and withdrawal issues.
People who own Bitcoin are sending their holdings to different crypto exchanges.
The FTX liquidity crisis is forcing mid-term Bitcoin holders to send their Bitcoin holdings to crypto exchanges. In fact, the crypto exchange influx jumped over 5000 BTC in the last 24 hours, as per Bitcoin Exchange Inflow data.
The BTC spent output age bands indicate two large spikes in spending activity. On Thursday, there were over 1200 BTCs spent, and on Friday, there were over 3600 BTCs spent. The total value is 5,133.49 BTCs. Bitcoin holders who bought Bitcoin in the last three to six months are sending their Bitcoins to exchanges. This is a bearish signal. Thus, the correction likely will continue in the next few days.
The current bitcoin price is $17,394. This is up by almost 4% in the last 24 hours. The rally followed the US releasing October CPI data at 7.7%, with inflation falling to a 9-month low.
However, the price of Bitcoin may again plunge to $15,000 as investors and whales start to move their holdings to exchanges. Investors need to watch the U.S. Dollar Index (DXY) for any indication of a potential upside move, in case this causes crypto prices to start declining. The DXY is currently at 107.61, declining below 110 after the release of CPI data.
The price of bitcoin has been struggling to stay under $20,000 for a few weeks now.
Bitcoin prices have again fallen below the psychological level of $20,000. Bitcoin prices are rising quickly but under low volumes, which could mean a decline at any time.
The US Securities and Exchange Commission (SEC), Department of Justice (DOJ), and Commodity Futures Trading Commission (CFTC) are all currently investigating Sam Bankman-Fried, FTX, and Alameda. The Bahamas Securities Commission has decided to freeze the assets of FTX Digital Markets.
