However, the Bitcoin price drifted out of its comfort zone to close the week, falling to a new weekly low just above the $115,000 mark on Friday, July 25. The latest on-chain data has offered insight into the major driver behind the market leader’s latest correction.
This on-chain observation is based on the Bitcoin Exchange Inflow – Spent Output Value Bands, which tracks the amount of Bitcoin spent outputs flowing into centralized exchanges at a given time. This metric offers insight into the different investor cohorts contributing the most to the exchange inflows.
Caueconomy highlighted that the massive coin movements seen on Friday are connected to some profit-taking by large players in the market. “OTC desks have also been attacking these platforms’ order books,” the on-chain analyst added.
One of the services known to be offered by centralized exchanges is the buying and selling of cryptocurrencies. Hence, the increased flow of cryptocurrencies (Bitcoin, in this scenario) is often correlated to increased selling pressure, as coins are often sent to exchanges to be dumped in the open market.
As of this writing, the price of BTC stands at around $117,346, reflecting an over 0.2% decline in the past 24 hours. According to data from CoinGecko, the market leader is down by nearly 1% in the past seven days.
