[Analysis] "Declining inflows of short-term investors into Binance… Bitcoin fear eases"

Bitcoin (BTC) sent by short-term holders (STH) to global cryptocurrency exchanges has recently been on the decline, data showed.

Darkfost, a CryptoQuant contributor, wrote on the 26th (local time) via CryptoQuant that "when Bitcoin fell to $60,000, fear spread among short-term investors who had entered the market most recently," adding that "as of early February, they sent a cumulative total of about 100,000 bitcoins to Binance over seven days, increasing selling pressure." Darkfost said, "However, that trend has shifted markedly since then," adding that "current short-term holder inflows into Binance have fallen to about a quarter of the level at the time."

Darkfost noted that "inflows (from short-term holders) have now dropped to around 25,000 bitcoins." He said, "That is the lowest level observed," adding that "because short-term investors are typically the most sensitive to market moves and have the most unstable investment behavior, the decline (in inflows) is interpreted as a relatively positive signal."

He went on to stress that "with a sideways trading range forming in the current market, fear has eased." Darkfost added that "the decline (in short-term holder inflows) provides the market with a certain degree of stability and means that actual selling pressure is easing," calling it "a change the market can welcome at a time when risk assets broadly are facing a challenging environment."