As the price of the flagship cryptocurrency dips below the $40,000 mark amid a wide cryptocurrency market sell-off, new data has shown that Bitcoin inflows into centralized cryptocurrency exchanges show large investors are selling off their holdings.

According to analysis by on-chain analytics firm CryptoQuant, these inflows have shown there are “signs of active selling pressure from both sharks and whales in the market,” with sharks being defined as entities holdings between 100 and 1,000 BTC, and whales being those that hold over 1,000 BTC.

The firm noted:

Following Bitcoin reaching the $49,000 price level, a shift in the nature of sellers in the exchange markets is notable. Previously dominated by retail investors, akin to shrimps (holding less than 1 Bitcoin), the market is now witnessing larger players taking charge, and these powerful holders are currently envisioning profits in the exchanges.

The price of the flagship cryptocurrency hit a high above the $49,000 mark earlier this year amid the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, with investors betting on signicant inflows for these funds as they allow both retail and institutional investors to gain exposure to the cryptocurrency without managing the private keys to a wallet.

The firm added that these holders, who have a higher ratio than short-term Bitcoin holders, have accumulated a lot of Bitcoin during the 2023 bull run, according to temporal data. The recent crypto market sell-off notable comes at a time in which a recent JPMorgan research report cast doubt on the impact of spot Bitcoin ETFs on the market.

The team of analysts, headed by Kenneth Worthington, anticipate that the spot Bitcoin ETFs, which have been a driving force in reviving the ecosystem, may not meet market expectations. Furthermore, the analysts voiced their concern that any letdown in ETF fund flows might dampen the excitement that has fueled the surge in cryptocurrency.

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