Bitcoins [BTC] Stock market inflows and outflows signal…

Bitcoin’s price drop on June 28th can be considered quite significant for the king coin. It effectively ripped out all of the upside from the past week, bringing BTC back down to 3AC crash ratings. One may ask: is this an indication of a major pullback or a minor setback?

See you on the other side

At the time of writing, BTC is again hovering around $20,000, which is starting to seem like a familiar situation for investors. This is the first time BTC has fallen to such a low in the past seven days. The cryptocurrency market showed a significant recovery until the June 28 crash.

BTC is down 5% in the last 24 hours of June 29th. Exchange outflows for bitcoin-specific funds totaled $453 million over the past week, according to CoinShares data.

This, in turn, wiped out all inflows deposited over the past six months. Also, according to a CryptoQuant update, there have been rampant exchange inflows to Coinbase from different age groups of Bitcoin owners.

The largest contributor comes from the six to twelve month group responsible for 3.1k BTC holdings. Additionally, the 12-18 month and the 3-5 year bands accounted for holdings of 200 BTC each.

Source: CryptoQuant

The latest data indicates an increase in transaction volume on the Bitcoin network. That should have given otherwise stunted investors some breathing space, but it hasn’t. As mentioned above, FUD is growing in the crypto market and BTC is obviously an important cog in the works.

According to a Glassnode tweet, Exchange Outflow Volume (7d MA) just touched a 19-month low of $30,517,649.52. This has also become a cause for concern among investors as stocks are piling up.

Source: Glassnode

In particular, a discouraging moment for investors was highlighted during Gary Gensler’s recent crypto talk. Gensler, the SEC chairman, told the Financial Times that there is a need for “one rulebook” for crypto regulation.

“I’m talking about a set of rules on the stock market,” he said.

However, investors have been looking for profit opportunities that depend on the market scenario. Now only time will tell if general market conditions can recover any time soon.

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