Bitcoins [BTC] Data shows that the “Sell The Fact” pullback is being led by traders from Binance and OKX

Bitcoin (BTC) has come under pressure since spot exchange-traded funds (ETF) trading began in the United States last Thursday. Data collected by Paris-based firm Kaiko shows that selling pressure has been concentrated on Binance, the leading crypto exchange by trading volume, OKX and Upbit.

Bitcoin, the leading cryptocurrency by market value, was changing hands at $42,700 at press time, down 12% from the high of $48,975 reached on Thursday. The price drop appears to be due to traders taking profits from long (buy) positions opened in anticipation of the ETF debut.

An indicator called Cumulative Volume Delta (CVD) shows that Binance traders have led the so-called “sell-the-fact” pullback in Bitcoin. The CVD tracks the net difference between buying and selling volumes over time, providing overall upward/downward pressure in the market. Positive values ​​indicate excessive buying volume, while negative values ​​suggest otherwise.

Binance's spot market CVD turned positive last Thursday and has been declining ever since, representing a capital outflow equivalent to nearly 5,000 BTC, data tracked by Kaiko shows. South Korea's Upbit saw the second largest net capital outflow, followed by Itbit and OKX.

“ETF trading began last Thursday with a sharp increase in cumulative volume delta (CVD) across all major exchanges; “Nearly 3,000 net BTC were purchased on Binance in the hour around market opening in the US. However, as some had feared, the selling news prevailed and Binance’s CVD quickly turned negative, as did OKX’s,” Kaiko said in a weekly report published on Monday.

“Itbit, another institutional exchange, showed consistent sales, albeit with lower volumes, and Upbit showed consistent sales with few setbacks,” Kaiko added.

The CVD of Coinbase, the custody partner for most ETFs, and Bitstamp were positive, indicating net capital inflows amid price weakness.

According to some analysts, prices could fall further to $40,000 and below before the pullback loses steam. The ETFs' initial performance was weak compared to Bloomberg analysts' forecast of $4 billion in inflows on the first day alone, suggesting a steeper price decline.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers