Crypto exchanges just saw the largest net inflow of bitcoin since last March's COVID crash, new data shows
- Cryptocurrency exchanges saw a net inflow of more than 30,000 bitcoin on Monday alone, according to data from Glassnode.
- Exchanges typically see net inflows when investors are liquidating positions or trading for other currencies.
- Bitcoin is down roughly 25% since Elon Musk said Tesla would stop accepting the currency.
Cryptocurrency exchanges on Monday saw the largest net inflow of bitcoin since last March's COVID-19 related crash on Monday.
According to data from Glassnode, exchanges registered a single-day net inflow of 30,749.89 bitcoin. That's the fastest inflow of bitcoin to exchanges since "Black Thursday" on May 12, 2020, when bitcoin's price dropped 40%.
Exchanges typically see an influx of bitcoin when investors convert their holdings into other cryptos or liquidate their positions.
Bitcoin has been under pressure ever since Tesla's CEO Elon Musk tweeted that his company will no longer accept the cryptocurrency as a payment method due to its environmental impact.
Cryptocurrencies are a "good idea" according to Musk, but they "cannot come at great cost to the environment."
Bitcoin has fallen roughly 25% since Elon's Tweet went out on May 12, while the total market cap for all cryptocurrencies is down around 23% in the same period.
There was also a spike in activity on bearish bitcoin options on Monday, according to figures from the crypto analytics firm Skew. Roughly $3.5 billion worth of options contracts changed hands on Monday compared to under $1.5 billion last Friday.
Still, Bitcoin always has its supporters. Fundstrat's Tom Lee doubled down on his bullish view on bitcoin even after Elon Musk's comments and tagged the top cryptocurrency with a $125,000 price target.