Exchange Drain Shows Bitcoin, Ethereum Accumulation Trend Continues
The outflow of Bitcoin and Ethereum from centralized exchanges indicates a growing trend of accumulation among investors. This led to billions of dollars worth of coins leaving exchanges every week as investors moved them. Even now, despite the recovery in Bitcoin and Ethereum prices, exchange outflows continue, indicating that investors are not delaying their purchases.
Bitcoin, Ethereum Netflow Still Negative
Forex net flows over the past two weeks have been negative for both Bitcoin and Ethereum. The same is true on a daily basis, with outflows continuing to outpace inflows, leading to negative net inflows.
According to Glassnode data, the net flow of bitcoin on the last day reached $158.5 million. In total, $498 million worth of BTC was flowing into exchanges, while more than $656 million was outflow.
Ethereum showed a similar net flow trend, with $170.7 million flowing into the exchange and $212.7 million leaving the exchange. This resulted in a negative net flow of $42 million in 24 hours. According to data from IntoTheBlock, ETH’s netflow remained negative on a seven-day rolling basis, but by a small margin.
📊 Daily on-chain transaction flow#bitcoin $BTC
➡️ $498 million
⬅️ $656.5 million
📉 Netflow: -$158.5M#ethereum $ETH
➡️ $170.7 million
⬅️ $212.7 million
📉 Netflow: -$42.0M#tether (ERC20) $USDT
➡️ $361.4 million
⬅️ $283.8 million
📈 Net Flow: +$77.6Mhttps://t.co/dk2HbGwPL4— Glassnode Alerts (@glassnodealerts) October 18, 2022
Recovery horizon?
The crypto market has been consolidating for some time, but indicators point to an end to this trend. The influx of Tether (USDT) into centralized forms also points to this. Stablecoin netflows are still positive, suggesting the end of a sell-off and the beginning of a buy trend in the market. However, it remains difficult to pinpoint exactly when there was a significant recovery, as net flows were around $77 million on the final day.
BTC price settles above $19,500 | Source: BTCUSD on TradingView.com
Over the past 24 hours, both Bitcoin and Ethereum have returned to the green, but have only registered a modest recovery. At the time of this writing, BTC is up 0.40% over the last 24 hours and ETH is up 0.47% over the same period.
Bitcoin resistance has reached $20,000 and needs to be beaten. Ethereum’s resistance has risen at $1,400 and even the hype from the completion of the Merge could not beat this level.
Featured image from Finbold, chart from TradingView.com
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Exchange Drain Shows Bitcoin, Ethereum Accumulation Trend Continues
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