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Investors sent $2 billion to exchanges Monday, the highest since Terra\u2019s collapse.\n<\/p>\n
Traders are sending billions to exchanges as crypto gives up gains after rallying to the highest since mid 2022. Analysts are pointing to profit-taking rather than a fundamental driver for the drop.<\/p>\n
Crypto holders sent $2 billion of Bitcoin to exchanges, according to Glassnode, the highest daily amount since the collapse of Terra. Funds sent to exchanges signal traders are getting ready to sell their assets.<\/p>\n Bitcoin has tumbled 7% to as low as $40,753 since Sunday, while Ethereum\u2019s Ether dropped 7% to $2,162. Both assets are at the lowest in 10 days. The correction comes after BTC and ETH had rallied to the highest since April and May, respectively.<\/p>\n Yesterday\u2019s crash triggered $330 million of liquidation in crypto futures contracts, although Coinglass reported<\/a> that the figure had reached as high as $516 million on the day.<\/p>\n The widespread sell-off signals profit-taking from traders, noted analyst for CryptoSlate, James Straten.<\/p>\n Head of research for investment firm CoinShares, James Butterfill<\/a>, told The Defiant <\/em>that the price action suggests it was \u201cmore of a technical pullback,\u201d and not a shift in broader market sentiment.<\/p>\n Butterfill explained that the correction isn\u2019t surprising with prices rising considerably in December, and a Relative Strength Index (RSI) consistently over 70. The RSI is a tool used to measure the short-term momentum of the market. When over 70, the market is considered to be overbought, whereas under 30 it flashes oversold.<\/p>\n Positive macro indicators also curbed crypto\u2019s price rally, explained Andr\u00e9 Dragosch, head of research for ETC Group<\/a>, a German institutional investment firm.<\/p>\n Start for free<\/a><\/div>\n \u201cStronger than expected\u201d US job data published last week is a factor, said Dragosch, along with US non-farm payrolls growth and the unemployment rate were stronger than consensus estimates.<\/p>\n The above coincides with a decrease in overall risk appetite from investors, \u201cputting a lid\u201d on the recent rally, he said.<\/p>\n Not all crypto assets are sliding.<\/p>\n Solana<\/a>\u2019s SOL, which has been enjoying a bullish 2023, remained unfazed by the broader sell-off and changes hands at $69.51. ORDI, the first BRC-20 token to reach<\/a> a $1 billion market cap, revels in double digit gains today, trading at $52.67.<\/p>\n CoinShares\u2019 latest institutional inflow report<\/a>, published yesterday, highlighted that large entities continue to gobble up crypto, with 11 weeks straight of accumulation.<\/p>\nProfit-Taking<\/h2>\n
Positive Macro<\/h2>\n
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Fund Flows<\/h2>\n