Kraken Sees Record Inflow of 14,924 Bitcoin – What’s Going On?
In Summary
Bitcoin deposits into Kraken exchange highest seen since 2018.
Hundreds of millions of dollars could move markets.
Analysts are starting to see signs of a potential bull market.
A historic inflow of Bitcoin (BTC) into Kraken deserves a closer look. The inflow of 14,924 Bitcoin, worth US $415.3 million ($656.5 million) marks the largest such movement of the most popular crypto asset since 2018.
Historic Inflow of 14,924 $BTC into Kraken: A Signal for Investors?
“The influx of 14,924 #Bitcoin deserves special attention as it is the largest recorded on Kraken since 2018.”
by @joao_wedson
Linkhttps://t.co/2uPXsa2lUl pic.twitter.com/SqLsXHCR2S
— CryptoQuant.com (@cryptoquant_com) October 4, 2023
Does the Inflow Indicate a Market Move?
The fact that a substantial amount of Bitcoin is being deposited on Kraken suggests that significant investors or entities may be looking to sell. When major players make substantial moves like this, it can potentially have a significant impact on the market’s dynamics, including its price.
However, it’s essential to be cautious when drawing conclusions from such events. Just because there is an increase in a single asset doesn’t automatically mean the market will turn bearish (prices will go down), nor does a decrease necessarily indicate a bullish trend (prices will go up). Cryptocurrency markets are complex and influenced by many factors, and any single event should be considered in the broader context of market dynamics.
Key Date to Watch Out For
Analyst Joao Wedson wrote on CryptoQuant:
“A key date worth highlighting is June 20th. On that day, Kraken’s reserves experienced a notable drop while the price of Bitcoin was rapidly rising. This can be interpreted as investors taking advantage of market gains by converting their assets into fiat currency or transferring them to other cryptocurrencies. However, the recent influx of BTC into Kraken may indicate a potential correction in prices.”
Nevertheless, co-founder and former BitMEX CEO Arthur Hayes believes a bull run is on the horizon. He took to X (formerly Twitter) to express his confidence in the current financial markets, which are experiencing rising interest rates despite the absence of any bear steepener in historical data. He explained “If the banks’ models don’t have it, then it is considered not a possible outcome and traders don’t hedge.“
Why do I love these markets right now when yields are screaming higher?
Bank models have no concept of a bear steepener occurring. Take a look at the top right quadrant of historical interest rate regimes.
It’s basically empty. pic.twitter.com/P6MQnCU73N
— Arthur Hayes (@CryptoHayes) October 4, 2023
Uptober Sees Bitcoin Cross $28k Mark
Source: CoinMarketCap
Typically perceived as a month with bullish performance, October has historically seen negative returns only twice. After making it close to US $28,500 ($44,800) in early October, Bitcoin is currently trading at US $$27,827.02 ($43,998) according to data from CoinMarketCap. BTC has been on an upward trajectory for the past few months, gaining 37.7% since the start of 2023.
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Filed under: Bitcoin - @ October 5, 2023 2:57 am