Analysis: BTC drop driven by whale selling, rising exchange inflows

On-chain analyst Easy On Chain stated that Bitcoin's recent drop below $80,000 was not a coincidence but the result of three concurrent factors, CryptoPotato reported. The analyst explained that the first factor was an increase in exchange net inflows. On May 11, the net outflow from exchanges was 19,995 BTC, significantly lower than the 28,000 to 35,000 BTC recorded earlier in the month, which increased downward pressure. The second factor was an expansion of short positions in the derivatives market. From May 8 to 10, open interest (OI) rose to 1.04 times the average, and funding rates turned negative, signaling that traders were betting on a decline. The third factor was the liquidation of leveraged long positions, with approximately $109.7 million in longs forcibly closed from May 11 to 13. On May 12 alone, long liquidations were 11.8 times greater than short liquidations. Easy On Chain added that the decline was further accelerated by whale selling and the release of U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data.