The much-anticipated Merge that proved to be beneficial for most, didn’t do anything for Bitcoin [BTC]. Some Ethereum [ETH]-linked assets posted double-digit gains, and BTC paid no heed. According to data from CoinMarketCap, the price per BTC stood at $19,907, with a 0.8% decline in the last 24 hours.
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Having declined by 16% in the last month, key on-chain metrics showed that the bears are still in control of the market. Additionally, there seems to be no rally in sight for the king coin in the coming weeks.
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What key metrics?
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According to new data from Santiment, BTC witnessed a rally in its exchange inflow since the beginning of the month. Between 7 September and 14 September, 1.69 million BTC worth $33.5 billion was sent to exchanges. According to Santiment, this was the highest BTC volume moved since October 2021.
Source: Santiment
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A spike in this metric is usually indicative of a rally in sell pressure for a crypto asset. With more BTC moved into exchanges, further price downside could be expected.
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Furthermore, CryptoQuant reported that following the United States Consumer Price Index reading on 13 September there was a sudden surge in BTC exchange inflows. This led to a 10% decline in the price of the leading coin, a few hours after the reading.
Source: CryptoQuant
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According to the report, “majority of the bitcoin movements were from the spot exchange (Coinbase) to the derivative one (Huobi), and predominantly a 3-6-month-old whale address.”
Source: CryptoQuant
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Further, data from IntoTheBlock showed a significant drop in BTC Large Holder Netflow in the last month. According to IntoTheBlock Resources, large holders of a crypto asset hold more than 1% of the asset’s total circulating supply.
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When the large holder netflow sees a spike, it means that this category of holders is accumulating. A drop signifies a decline in the holdings of large holders. Last month, the large holder netflow for BTC declined by 100%.
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Furthermore, in the last 90 days, the same extent of decline has been logged. With a rally in large holder netflow usually a precursor to the spike in the price of an asset, a continued decline in BTC’s large holder netflow might occasion a further drop in its price.
Source: IntoTheBlock
