## Bitcoin (BTC) Experiences Further Decline Amid Ongoing Correction
The price of Bitcoin (BTC) has continued to drop as a lengthy correction has erased previous gains. The cryptocurrency market is currently in a challenging state, characterized by significant sell pressure and negative sentiment affecting asset prices. Over the past week, traders have witnessed an 8% decline in total market capitalization, alongside a downward trend in on-chain metrics.
## BTC Exchange Inflow Sends Bear Signals
Recent data from CryptoQuant indicates bearish trends for Bitcoin on the Binance exchange. Notably, the inflow of the top 10 transactions has fallen to levels not seen in nearly a year. This metric is crucial for traders as it reflects the substantial asset flows into centralized exchanges. As the largest exchange by trading volume, Binance remains a key hub for large investors, often referred to as whales. Historically, increased asset movements to centralized exchanges have led to heightened selling activity, while outflows from exchanges typically signal a bullish outlook.
### Increasing Bitcoin Reserves and Bearish Sentiment
Binance’s Bitcoin reserves have surged to levels last recorded in November of the previous year, which may suggest increased selling pressure. This observation is further corroborated by the Taker Buy/Sell Ratio, indicating that bearish sentiment is currently prevalent on the exchange. Additionally, the seven-day moving average for Bitcoin has risen as panic spreads among traders. Last week, Bitcoin’s price dipped below $80K, prompting a significant retail exit as holders sought to minimize losses. Institutional investors also joined the selling trend after the price fell below key support levels. As of now, BTC is trading at $85,843, reflecting a 3.5% drop in the last 24 hours and extending losses to over 16% in recent weeks. Despite this sharp decline, prominent figures like CryptoQuant’s CEO remain optimistic about a potential rebound for the asset.
## Altcoins Face Similar Pressure
The downturn in Bitcoin’s price has sent negative ripples throughout the broader market, diminishing hopes for an altcoin season. Ethereum has seen a 6% drop, trading at $2,177, with weekly outflows surpassing 22%. The challenges facing altcoins have intensified in recent weeks, particularly after falling below the $2,500 mark amid pressure from large investors. XRP has also experienced a significant loss of gains accumulated in December, with its price dropping to $2.11 before experiencing a slight recovery. This institutional favorite, often seen as a catalyst for an altcoin season, is currently facing obstacles due to declining trading volumes. However, XRP bulls remain hopeful for a rebound when macroeconomic factors turn favorable and market appetite increases. Cardano has also felt the strain, with weekly exits reaching 25%, impacting traders’ positions.
