- Data suggested that net exchange flows have risen for Bitcoin.
- However, bearish sentiment against BTC rose.
Bitcoin [BTC] has been having quite a rally over the past three months as its prices soared materially. Due to the excitement around BTC, the net exchange flow for Bitcoin has also increased in this period.
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Glassnode’s data stated that the net exchange flows increased by around 4.18k BTC this week, which is the largest net surge seen since the fall of LUNA in May 2022.
Source: glassnode
BTC Bears show their teeth
However, this positive trajectory could soon end. According to analyst James V Stratten, Bitcoin puts are being priced at a premium. This means that the cost of buying put options has increased, which could indicate that investors are expecting the price of Bitcoin to fall.
Another indicator of bearish sentiment from traders would be that perpetual contracts have now gone into bearish territory. Perpetual contracts are a type of derivative product that allows traders to bet on the future price of an underlying asset, such as Bitcoin, without actually owning the asset.
Here comes the #Bitcoin bears yet again
Options 25 DS – Suggesting puts are now back at a premium.
While perps are flip-flopping from neutral to bearish territory. pic.twitter.com/SmJgqO2xuo— James V. Straten (@jimmyvs24) March 28, 2023
Despite this bearish sentiment from traders, many addresses continued to accumulate BTC. According to Glassnode’s data, addresses holding more than 1 BTC continued to rise and reached an all-time-high at press time.
Source: glassnode
It appeared that most of these addresses were planning to hold their BTC. This was indicated by BTC network’s declining velocity.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
The overall number of daily active addresses on the network also fell during this period. Despite the declining activity on the network, the interest in Bitcoin NFTs remained high. The growing number of NFT trades on the Bitcoin network suggest the same.
Source: Santiment
Even though Bitcoin bears may be accurate in the short term, the spike in interest in Bitcoin NFTs and Ordinals suggests that Bitcoin could still grow in the long run.