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According to a recent tweet by IntoTheBlock, Bitcoin, the first and largest cryptocurrency by market capitalization, saw $1.04 billion in net inflows to exchanges this week. This essentially wiped out the three previous weeks of outflows, indicating hesitancy in the market given recent macroeconomic uncertainties.
Per a graphic posted by IntoTheBlock, Bitcoin total fees decreased 10.74% to $3.2 million while $1.04 billion accounted for exchange flows, with $1.3 billion marking inflows.
Typically, large inflows to exchanges indicate potential selling pressure. Traders move assets to exchanges for various reasons, which include selling. This reversal from previous outflows prompts speculation on a major price shift for Bitcoin, which has stagnated in recent weeks.
Tomiwabold OlajideMeanwhile, Bitcoin continues to gain institutional attention. According to CNBC, video game retailer turned meme stock GameStop is considering investing in Bitcoin and other cryptocurrencies, according to sources familiar with the matter. According to one insider, the company is still determining if this is in the best interests of GameStop's business.
Bitcoin price action
Bitcoin (BTC) staged a slight increase early in the U.S. trading day on Friday, but the move faded. Turning to the action on Friday, Bitcoin surged to $98,980 following the announcement of January retail sales figures in the United States. The figure much exceeded analyst expectations, raising the prospect of a rate cut from the Federal Reserve in the first half of this year.
Bitcoin fell to near $94,000 this week as investors considered a spate of economic headlines, including higher-than-expected CPI data.
In an appearance on Tuesday, Federal Reserve Chair Jerome Powell reiterated the central bank's commitment to lowering inflation and signaled that officials are not rushing to decrease interest rates. Powell also told the House Financial Services Committee that the Fed had made "great progress" on inflation since the cycle peak, but "we're not quite there yet."
Bitcoin's price was down 0.21% in the last 24 hours to $97,612 at the time of writing, marking the fifth consecutive weekend of decline. Bitcoin is in a tight trading range below its daily SMA 50 of $98,758, anticipating its next major move.
Dan Burgin
Vladislav Sopov