Bitcoin Exchange Inflow Reaches $2 Billion Amid Profit-Taking Trends

After a period of bearish activity, Bitcoin's price has stabilized above $86,000. Recent on-chain data indicates profit-taking by investors contributed to the cryptocurrency's double-digit losses last week.

Key Observations:

Significant Bitcoin amounts were transferred to centralized exchanges, with 20,000 BTC (valued at nearly $2 billion) moved in the past week.
The Exchange Inflow metric, which tracks Bitcoin flows to exchanges, suggests potential offloading by investors. This increased supply can exert downward pressure on prices if demand doesn't match.
On November 21, exchange inflows peaked at 81,000 BTC, the highest since mid-July, contributing to significant price volatility.
Currently, Bitcoin is priced around $86,070, marking an over 2% increase in the last 24 hours.

Profit-Taking Phase and Market Implications:

CryptoQuant CEO Ki Young Ju noted Bitcoin is in a profit-taking phase, as indicated by rising exchange inflows and the PnL Index Signal.
This signal suggests Bitcoin may be entering a bear market unless macro liquidity changes, similar to 2020.
Attention is focused on the upcoming FOMC meeting in December amid reduced expectations for a US Federal Reserve interest rate cut.