Outflows Rock Bitcoin, Ethereum In Wake Of Price Decline
Bitcoin and Ethereum had led the market in the recent price decline. It has led to a lot of profit-taking on the part of investors that want to avoid incurring more losses in the long term. Nevertheless, investors remain undeterred as they continue to accumulate coins. The result of this has been intense outflows for both Bitcoin and Ethereum leading to a negative net flow for both digital assets.
Bitcoin, Ethereum Investors Not Backing Down
Bitcoin slid down below $40,000 at the start of the week and brought with it a wave of long liquidations. These prices have seen sentiment turn mostly negative in the meantime but for those who are accumulating, it has been a good time to increase their bags and the exchange outflows corroborate this.
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For the past day, exchange outflows have surpassed that of inflows by more than $200 million. It has come out to $1.1 billion in bitcoin being moved out of centralized exchanges while inflows remain at $886.4 million for the same time period.
The same trend was the case for the second-largest cryptocurrency by market cap, Ethereum. Outflows had also come out ahead of inflows by more than $70 million. In total, there was $658.2 million worth of inflows and outflows went as high as $729.2 million.
📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $886.4M in
⬅️ $1.1B out
📉 Net flow: -$236.2M#Ethereum $ETH
➡️ $658.2M in
⬅️ $729.2M out
📉 Net flow: -$70.9M#Tether (ERC20) $USDT
➡️ $816.5M in
⬅️ $648.4M out
📈 Net flow: +$168.0M
— glassnode alerts (@glassnodealerts) April 13, 2022
Tether Says More Accumulation
The amount of Tether that flowed into exchanges compared to that which flowed out also supports investors are continuing the accumulation trend. Mostly when investors are moving their Tether to exchanges, it is so they can purchase cryptocurrencies, a large portion of which ends up going to Bitcoin and Ethereum.
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$816.5 million were moved into centralized exchanges over the past day and $648.4 million were moved out. This saw a positive net flow of $168 million worth of Tether moving into exchanges.
It follows the same trend from the previous day which had seen bitcoin record a negative net flow of -$45.4 million for bitcoin and -$74.4 million for Ethereum. Tether had also recorded a positive net flow of $132.3 million, indicating that investors are accumulating through the downtrend.
BTC loses footing above $40,000 | Source: BTCUSD on TradingView.com
Featured image from US News Money, chart from TradingView.com