Bitcoin and Ethereum have led the market in price drops recently. It has resulted in a lot of profit taking on the part of investors who want to avoid incurring further losses in the long run. However, investors remain unwilling as they continue to accumulate coins. The result of this was massive inflows for both Bitcoin and Ethereum resulting in a negative net inflow for both digital assets.
Bitcoin and Ethereum Investors Don’t Hold Back
Bitcoin dropped below $40k at the start of the week and brought with it a prolonged wave of liquidation. These prices have seen a shift in sentiment mostly to negative in the meantime, but for those who are accumulating, it is a good time to increase their portfolio and exchange outflows are confirming that.
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In the past day, exchange outflows exceeded inflows by more than $200 million. It amounted to $1.1 billion of bitcoins moved out of central exchanges while inflows remained at $886.4 million for the same time period.
The same trend has been the case for the second largest cryptocurrency by market capitalization, Ethereum. The outflows came before the inflows by more than 70 million dollars. In total, there were $658.2 million worth of inflows and outflows amounting to $729.2 million.
The daily flow of exchange on the chain# bitcoin BTC dollars
➡️ $886.4 million in
$1.1 billion out of
📉 Net Flow: $236.2 Million# Ethereum ETH dollar
➡️ $658.2 million in
$729.2 million out of
📉 Net Flow: $70.9 Million#Rope (ERC20) USDT . dollars
➡️ $816.5 million in
⬅️ $ 648.4 million out of
📈 Net Flow: +168.0 Million Dollarshttps://t.co/dk2HbGwhVw
– glassnode alerts (glassnodealerts) April 13, 2022
Tether says more accumulation
The amount of tether that flowed into exchanges compared to that which flowed abroad also supports investors in continuing the accumulation trend. Mostly when investors move their Tether to exchanges, it is so that they can buy cryptocurrencies, a large part of which ends up going to Bitcoin and Ethereum.
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Over the past day, $816.5 million was moved to the central exchange, and $648.4 million was moved. This saw a net positive inflow of $168 million from Tether moving to exchanges.
It follows the same trend from the previous day which saw Bitcoin record a net negative inflow of -$45.4 million for Bitcoin and -$74.4 million for Ethereum. Tether also posted a positive net inflow of $132.3 million, indicating that investors are accumulating through a downtrend.
BTC loses footing above $40,000 | Source: BTCUSD on TradingView.com
Featured image from US News Money, chart from TradingView.com