Recent data shared in a tweet by IntoTheBlock indicates that Bitcoin, the pioneering and foremost cryptocurrency by market cap, experienced net inflows to exchanges amounting to $1.04 billion this week. This surge effectively reversed the outflows from the past three weeks, reflecting a sense of caution in the market amid ongoing macroeconomic challenges.
According to a visual provided by IntoTheBlock, Bitcoin’s total fees saw a reduction of 10.74%, dropping to $3.2 million, with the $1.04 billion in exchange flows predominantly driven by $1.3 billion in inflows.
Generally, significant inflows to exchanges suggest possible selling pressure. Traders may transfer assets to exchanges for a variety of motives, including the intention to sell. The reversal from recent outflows has sparked speculation regarding a potential shift in Bitcoin’s price, which has remained relatively stagnant in the preceding weeks.
In other news, Bitcoin continues to attract institutional interest. As reported by CNBC, GameStop, the video game retailer that transitioned to a meme stock, is contemplating investments in Bitcoin and other cryptocurrencies, as per sources familiar with the situation. An insider noted that the company is still evaluating whether this aligns with GameStop’s business objectives.
Bitcoin Price Action
On Friday, Bitcoin (BTC) experienced a slight uptick during early U.S. trading, though the momentum waned. Specifically, upon the release of January’s retail sales figures in the United States, Bitcoin spiked to $98,980, significantly surpassing analyst predictions and heightening expectations for a potential rate cut from the Federal Reserve within the first half of this year.
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This week, Bitcoin dipped close to $94,000 as investors absorbed various economic news, including higher-than-expected CPI data.
On Tuesday, Federal Reserve Chair Jerome Powell reiterated the central bank’s dedication to combating inflation, indicating that policymakers are not in a hurry to lower interest rates. Powell also informed the House Financial Services Committee that “great progress” has been made on inflation since the peak of the cycle, but added, “we’re not quite there yet.”
At the time of writing, Bitcoin’s price has decreased by 0.21% over the last 24 hours to $97,612, marking its fifth consecutive weekend of decline. Bitcoin continues to trade within a narrow range below its daily SMA 50 of $98,758, poised for its next significant movement.
