Data from CryptoQuant shows that cryptocurrency exchanges have recorded 83,481 BTC net inflows amid fear that a further drop in the asset could trigger a chain effect.
BTCUSD is down by 7.51%.
The exchange inflows have reportedly reached a three-and-a-half-year high, with users from about 21 major exchanges sending assets back to their wallets.
The report shows that the inflow is the largest since 2018, while May 9, 2022, closed at 29,082 BTC in net inflows for the platform monitored by CryptoQuant.
CryptoQuant CEO Ki-Young Ju points out that most of the selling pressure comes from Binance and FTX. The executive has cited derivatives the activities of derivatives traders and that of the large cryptocurrency exchanges.
Since the bearish momentum in the major cryptocurrency, spot price action has returned to about $21,000, while the daily exchange inflows have reached 59,376 BTC.
Bitcoin is currently trading at $20,272 in a 9.11% drop in the past day and a 33.4% decline in the past week. Ether has plunged 42% to trade at $1,032.