Bitcoin’s Resurgence Fails to Spark Major Exchange Transfers

Bitcoin managed to rebound from around $60,000 in early summer to close at $78,450 on September 8. However, the expected surge in large transfers to spot exchanges has not materialized. According to CryptoQuant analyst Woominkyu, the current data does not suggest a significant rise in continuous selling pressure rooted in large transactions.

Are Bitcoin Exchange Inflows at Usual Levels?

Indeed, inflows to spot exchanges remain within typical limits as indicated by the insights shared by Woominkyu. The data reveals that on September 8, the top ten Bitcoin inflows to exchanges summed up to 5,442 BTC, which is 4.4 times larger than the previous day but only 5.1% above the 30-day average. Moreover, the recent seven-day average inflow stands at 4,678 BTC, which is below many peaks seen earlier in the year.

Longer-term charts also show that the Bitcoin price recovery has not been accompanied by unusually large exchange transfers. According to Woominkyu’s assessment, the increase on September 8 represents a return to normal rather than an influx of extraordinary capital.

Going forward, it’s crucial to closely monitor the direction of $BTC prices alongside exchange inflows. A sustained rise in the seven-day inflow average amid weakening prices could signal increasing potential selling pressure.

Is Iran Easing Crypto Use for Trade Revenue?

Yes, Iran has taken decisive steps in facilitating the use of cryptocurrencies in foreign trade. According to sources cited by the Financial Times, the Central Bank of Iran, facing tightened U.S. sanctions, is encouraging businesses to repatriate foreign earnings via cryptocurrencies like Bitcoin and Tether’s USDT.

Businesses have pointed out that authorities have relaxed forex controls and allowed cross-border transactions through Iranian crypto exchanges in recent months. Previously, exporters were compelled to repatriate a substantial portion of their earnings through government-run platforms at often below-market rates, promoting the retention of funds abroad or undeclared returns.

With recent policy changes, businesses can now convert their foreign currency at market rates and utilize their export revenues for imports without channeling through the official system. Iranian officials estimate that undeclared earnings stored domestically and internationally exceed $100 billion. Furthermore, Alireza Bozorgmehri of the Iran Digital Transformation Association noted that the central bank has loosened its scrutiny over crypto exchanges.

• Iran had placed a $10 million import order funded via cryptocurrencies in 2022.
• These crypto payment routes remain vulnerable to U.S. sanctions.
• The U.S. sanctioned four wallets linked to Iran’s central bank in July, prompting Tether to freeze $131 million in USDT.
• In August, the U.S. extended measures to cover crypto, gold, maritime logistics, and tech sectors.

Amid ongoing tensions with the U.S. since February, Iran’s clandestine $7.8 billion crypto economy has been thrust into the spotlight. Despite leaning on state-backed Bitcoin mining and stablecoins to circumvent the U.S. dollar, reports suggest that businesses still prefer repatriating funds through currency exchanges in neighboring countries.