Crypto Exchanges Saw Inflows of 30K Bitcoin Prior to Grayscale’s SEC Victory

“The exchange supply of bitcoin was boosted significantly just prior to Grayscale’s win over the SEC. It looks quite clear that the powers that be knew of the inevitable boost in crypto market capitalization as a result of this outcome,” Santiment tweeted, echoing onchain analyst Ali Martinez’s comment.

Addresses-based onchain metrics are subject to labeling issues. Hence, drawing definite conclusions from the same is challenging.

The supply available on centralized exchanges had increased before Tuesday’s pivotal court ruling. (Santiment, Ali Martinez) (Santiment, Ali Martinez)

Mean inflows and outflows surge

Data tracked by South Korea-based CryptoQuant shows the mean inflow or amount of BTC transferred to exchanges per transaction rose to 1.146, the highest since June 21, as prices rallied to $28,000.

Mean inflow indicates number of coins transferred to exchanges per transaction. (CryptoQuant) (CryptoQuant)

An uptick in the mean inflow indicates investors are sending a large number of coins in a transaction, a hint of potential selling pressure.

However, that’s not necessarily the case this time, as mean outflows also jumped to two-month highs and the net balance held on exchanges, especially those offering spot trading, declined.

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“Reserves held on U.S.-based spot exchanges continue to decrease while reserves on offshore exchanges, offering derivatives trading continue to increase. It’s a sign derivatives and offshore exchanges drive the current price action,” CryptoQuant said in a Telegram message.

Edited by Parikshit Mishra.

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Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk’s Markets team.

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