March Madness: Bitcoin’s Turbulent Ride

March 2020 was no ordinary month for Bitcoin. It brought us ups, downs, and a bunch of sideways action that left even the most seasoned crypto users scratching their heads. According to blockchain analysis wizards at Chainalysis, BTC exchanges saw a staggering inflow—almost 319,000 BTC pouring in on March 13 alone. Now that’s what we call a *blockchain shower*! However, this influx wasn’t all rainbows and butterflies; it led to Bitcoin’s price nosediving to the $3,000s, making it the biggest daily drop we’ve witnessed in a staggering seven years.

Have We Landed? Signs of Stability

So, is the storm over? According to our dear friends at Chainalysis, the answer is a cautious “maybe.” They’ve noted that even though the crypto inflow remains robust—about twice the daily average—it appears that BTC has settled down for the moment. After the chaotic whiplash, “the majority of excess bitcoin arriving at exchanges has been sold, and the worst of the oversupply appears to be finished for now,” they stated. It’s like Bitcoin took a moment to catch its breath after running a marathon.

Bitcoin’s Flow: What Do the Numbers Say?

Here’s where things get a tad geeky, but hang tight! Chainalysis mentions that while transfers of 10 to 1,000 BTC made up a whopping 70% of all BTC exchanges, the overall amount hitting the exchanges just wasn’t enough to sink the ship. “The majority of available bitcoin was not cashed out, suggesting that most bitcoiners are happy to hold.” That’s right; 712,000 BTC above average was sent to exchanges, yet it only represents about 5% of all mined bitcoin! Talk about a game of musical chairs!

Looking Down the Road: Crypto’s Crystal Ball

The big question remains: what’s next for Bitcoin in this unpredictable financial landscape? As retail businesses across the U.S. hit pause and workers are forced to juggle home offices with children and pets, the outlook for all financial markets hangs in a balance. With international travel restrictions continually shifting, crypto events are falling like dominoes.

Watch and Learn: A Continual Monitoring Approach

Despite all this uncertainty, Chainalysis insists on sticking to traditional indicators to keep track of Bitcoin’s health. “It’s hard to predict where the bitcoin market will go next. However, large increases in exchange inflows have proven to be a good indicator of increased volatility,” they warned. So keep those eyes peeled, because professional traders will continue to pull strings over retail users, wielding much larger volumes as the volatile puppet masters of the market.