On-chain data analysis firm Glassnode tweeted a 7-day moving average chart of exchanges receiving Bitcoin that showed a one-month high of inflows.
Previous 1-month high of 1,886.780 was observed on 05 May 2022
— glassnode alerts (@glassnodealerts) May 6, 2022
BTC USD down -1.30%, ETHUSD down -1.99%
Over the last 7 days, the exchange addresses received 1,889,792 BTC. Sustained inflows might be a concern for market participants.
With the US Fed maintaining its hawkish policy stance, risk-on assets such as Bitcoin come under heightened pressure. Investors should brace for worse with soaring inflation rates.
The Fed hiked interest rates by a half a percentage point, the most significant single increase in two decades, causing Bitcoin to sink further.
Inflows are a bearish indicator because sending Bitcoin to an exchange need investors to move it from storage and incur a transaction charge.
The most likely reason to send funds to an exchange is to sell the tokens. The exchange inflows are intensifying pressure and signal prices can fall.