The Reason for Bitcoin's Decline: Small Investors
The Exchange Inflow CDD is hovering quite low at 720. After the sharp rise seen in mid-April and the small increase at the end of May, the metric has returned to its base level. We understand that long-term investors are not sending BTC to Binance. I interpret this data positively, as Binance is the exchange with the largest liquidity.
Selling is coming from short-term investors. Small investor inflows have increased sharply. The Spent Output Value Band is at its highest level in recent times, around 9.80. This means there is a high volume of transfers from wallets with a size of 0-0.01 BTC to Binance.
The latest data in the chart shows that SOPR is approximately 0.98, indicating that coins spent on-chain are changing hands at an average loss.
Based on this chart, it appears that selling pressure will continue in the short term. A strong on-chain signal to support a rise has not yet formed.
While the fact that large investors are not selling is preventing sudden drops, the horizontal negative pressure seems likely to continue. $BTC
The Exchange Inflow CDD is hovering quite low at 720. After the sharp rise seen in mid-April and the small increase at the end of May, the metric has returned to its base level. We understand that long-term investors are not sending BTC to Binance. I interpret this data positively, as Binance is the exchange with the largest liquidity.
Selling is coming from short-term investors. Small investor inflows have increased sharply. The Spent Output Value Band is at its highest level in recent times, around 9.80. This means there is a high volume of transfers from wallets with a size of 0-0.01 BTC to Binance.
The latest data in the chart shows that SOPR is approximately 0.98, indicating that coins spent on-chain are changing hands at an average loss.
Based on this chart, it appears that selling pressure will continue in the short term. A strong on-chain signal to support a rise has not yet formed.
While the fact that large investors are not selling is preventing sudden drops, the horizontal negative pressure seems likely to continue. $BTC