Net daily bitcoin exchange flows have been erratic in the past month, to say the least. This is due to the many fluctuations between dumping and hoarding by space investors, all of which have affected the price of the digital asset in their own way. However, net flows are starting to find equilibrium which is unfortunately not positive.
Outflows begin to dominate
The inflows and outflows of the last day were not worrisome in a way but the fact that they continue to skew towards inflows is a testament to the selling that rocked the place. Data from Glassnode showing net flows between the two shows that more BTC was moving to central exchanges than it was leaving them. A total of $729.7 million of BTC has been moved from exchanges in the last day, while inflows have reached $766.9 million. This resulted in a net positive inflow of $37.2 million.
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This is not surprising given that more investors are trying to exit digital assets to avoid further losses. Even with the accumulation trend that has been recorded across large investors, it is still not enough to disrupt the amount of BTC being transferred to central exchanges to be sold.
The daily flow of exchange on the chain# bitcoin BTC dollars
➡️ $766.9 million in
⬅️ $729.7 million out of
📈 Net Flow: + 37.2 Million Dollars# Ethereum ETH dollar
➡️ $316.1 million in
⬅️ $281.1 million out of
📈 Net Flow: +35.1 Million Dollars#Rope (ERC20) USDT . dollars
➡️ $364.9 Million in
⬅️ $403.5 million out of
📉 Net Flow: $38.6 Millionhttps://t.co/dk2HbGwhVw
– glassnode alerts (glassnodealerts) 12 July 2022
This negatively affected the price of bitcoin as the digital asset fell below $20,000 again. The fact that there are more USDTs leaving the exchanges than those coming in shows that investors are turning to stablecoins for safety. As such, they are not buying cryptocurrencies like bitcoin.
BTC loses footing above $20,000 | Source: BTCUSD on TradingView.com
Bitcoin investors are trying to catch up
Although the price of Bitcoin continues to decline, the interest of investors, especially the smaller ones, has not diminished. This renewed interest is seen in the number of addresses holding at least 0.1 BTC. After falling during the price crash, the number has now recovered and reached a A new all-time high of 3,706,019 titles With over 0.1 BTC on their balance.
Related reading | Wall Street Investors Expect Bitcoin to Reach $10,000, Is It Possible?
Now, this has not affected the price much in any way since these small investors have little control over the market. However, it speaks volumes about how investors view the current market climate, which for many has become an opportunity to buy coins at a discount.
However, the digital asset continues to maintain its bearish momentum. More titles are running as prices continue to drop. Bitcoin is trending at $19,770 at the time of writing and has now fallen below the market cap of $400 billion.
Featured image from Analytics Insight, charts from TradingView.com
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