With the market turmoil, digital assets like Bitcoin and Ethereum are experiencing challenges in their prices in ways that have caused investors to shiver. The downtrend caused a massive selloff that pushed prices towards yearly lows. Despite the volume that has already sold out, it seems that the sellers are not finished yet. This is evidenced by the volume of Bitcoin and Ethereum that have been making their way to the central exchanges lately.
Bitcoin and Ethereum affected by inflows
The Inflows have been growing steadily lately Given the volume traded on the exchanges, this growth is alarming. The best Bitcoin and Ethereum coins usually hold up when it comes to markets like this, and while they have held up, investors seem unconvinced that they will continue to do so. This is one of the reasons the flows are huge.
Data shows that more than $1.4 billion worth of bitcoin has flowed into central exchanges in just the last 24 hours. Although this is down from the previous day when $1.7 billion of BTC was moved to exchanges, it significantly exceeded the outflow rate compared to the previous day.
Related reading | How Pegging the Tether Can Predict Bitcoin’s Rising Volatility
Bitcoin outflows over the past 24 hours have reached $1.2 billion. What this resulted in was a net positive outflow of $233 million.
Ethereum is not excluded from this either. If anything, the second largest cryptocurrency by market capitalization has been hurt worse by exchange inflows. For the previous day, its inflows reached $569 million. But unlike Bitcoin, not enough outflows have been recorded to offset this figure.
BTC continues downtrend | Source: BTCUSD on TradingView.com
This will continue into Wednesday’s market, which saw $658.2 million flowing into central exchanges. In the same time period, there were $651.1 million flowing from the exchanges, leaving a positive net worth of $7.2 million.
USDT Spell Selling Flows
One way to indicate whether investors are buying or selling Bitcoin, Ethereum and other digital assets is through the stable flow of coins, and in recent times, that flow rate has not been encouraging. saw tuesday US$1.1 billion flows into stock exchanges, recording a significant figure but outflows came higher. In total, there was $1.7 billion of USDT on the exchange, resulting in a net negative inflow of $612.1 million.
Related reading | Funding Rates Drop to Annual Low After Bitcoin Drops Below $29,000
What metrics like this show is that investors are more likely to convert their volatile cryptocurrency to these stablecoins and take them off exchanges for safekeeping. Mostly to provide shelter from a highly volatile market.
However, USDT volumes over the past 24 hours are starting to paint a slightly better picture. While outflows reached as high as $738.5 million last day, inflows were $871.4 million, a net positive inflow of $132.9 million. If this trend continues, it is possible that the current selling trend will turn into buyers which will hopefully lead to a rebound in the market.
The daily flow of exchange on the chain# bitcoin BTC dollars
➡️ $1.4 billion in
$1.2 billion out of
📈 Net Flow: +223.0 Million Dollars# Ethereum ETH dollar
➡️ $658.2 million in
⬅️ $651.1 million out of
📈 Net Flow: + $7.2 Million#Rope (ERC20) USDT . dollars
➡️ $871.4 million in
⬅️ $738.5 million out of
📈 Net Flow: + $132.9 Millionhttps://t.co/dk2HbGwhVw
– glassnode alerts (glassnodealerts) May 19, 2022
Featured image from News Central TV, chart from TradingView.com
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