With the decline in the cryptocurrency market, there have been a number of things that have changed dramatically in the space. Mostly, investors were rushing out of the market before the crash took more of their money. This has led to a significant increase in the number of cryptocurrencies flowing to exchanges. Most notable were Bitcoin and Ethereum, whose daily exchange flows have touched billions of dollars.
Billions of cryptocurrencies to exchanges
The last 24 hours data shows that the amount of money being transferred to central exchanges has increased over the past week. Instead of the numbers below the billion dollars that were normally recorded, the volume has gone up exponentially.
glass Reports More than $3 billion worth of bitcoin has moved to exchanges over the past 24 hours. In total, $3.2 billion worth of BTC was recorded to flow into exchanges, with $3.3 billion flowing out, resulting in a net negative inflow of -$103.5 million.
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It was the same with Ethereum which also saw $2.1 billion inflow while $1.5 billion inflow. The positive net inflow of $532.4 million for Ethereum is in line with the outflow trend that has been recorded for the digital asset over the past two months.
Interestingly, despite its rise, the numbers for the past 24 hours are almost 50% lower than what was recorded on Sunday. This is understandable given that the majority of the market crash occurred in the last hours of Sunday, causing investors to want to move their money.
Total market cap below $1 trillion | Source: Crypto Total Market Cap on TradingView.com
To put this in perspective, Sunday saw $6.5 billion worth of bitcoin flowing into central exchanges, while Ethereum numbers hit $3.7 billion in the same time period.
🚨 Weekly exchange stream on the chain 🚨# bitcoin BTC dollars
➡️ $6.5 billion in
⬅️ $6.5 billion out of
📉 Net Flow: $9.9 million# Ethereum ETH dollar
➡️ $3.7 billion in
$3.5 billion out of
📈 Net Flow: +181.6 Million Dollars#Rope (ERC20) USDT . dollars
➡️ $3.5 billion in
⬅️ $3.2 billion out of
📈 Net Flow: +339.4 Million Dollarshttps://t.co/dk2HbGwhVw
– glassnode alerts (glassnodealerts) June 13, 2022
Cord flows out say there is no buildup
Tether is the largest stablecoin and owns the largest selection of cryptocurrency trading pairs out there in the market. The trend of inflows and outflows often helped tell if cryptocurrency investors were looking to buy coins or were actually dumping their coins.
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Tether inflows and outflows over the past couple of days show that instead of trying to build up, investors are turning to the safety offered by this stablecoin. On Sunday, USDT inflows were slightly higher than outflows, which is not a sign of good news for the cryptocurrency market. This trend has now continued as the past 24 hours have seen matching outflows.
What this indicates is that investors are not buying Bitcoin or Ethereum. Instead, they are converting their cryptocurrencies into stablecoins to escape the extreme volatility of the current market.
Featured image from Forbes India, chart from TradingView.com
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