Grayscale’s Bitcoin ETF saw substantial investment outflows that surpassed the $66.9 million it had attracted just a few days earlier.
Bitcoin, Solana Take Center Stage In $721 Million In Institutional Inflows
According to a CoinShares report, Bitcoin and Solana led the way in the amount of institutional inflows into digital asset investment products last week. The report also highlighted an emerging trend among Spot Bitcoin ETFs in the US.
Bitcoin Records $703 Million In Inflows
Bitcoin is reported to have seen inflows totaling $703 million last week, thereby accounting for 99% of all flows into these investment products. Solana came in a distant second with an inflow of $13 million, outperforming the second-largest crypto token, Ethereum, which saw an inflow of $6.4 million.
The spotlight was on Spot Bitcoin ETFs in the US, with these funds seeing an inflow of $721 million last week. These new ETFs are said to have now averaged $1.9 billion in inflows over the last four weeks, bringing their total inflows to $7.7 billion since launch. Meanwhile, Grayscale’s GBTC has contributed largely to the $6 billion that these funds have recorded as outflows so far.
CoinShares noted that these outflows have slowed in recent weeks, suggesting that GBTC investors have cooled off on taking profits. The inflows recorded by other Spot Bitcoin ETFs have also been able to overshadow GBTC’s outflows. NewsBTC had also recently reported how BlackRock’s IBIT had surpassed GBTC in trading volume for the first time.
A Drop In Trading Volume
Last week was a relatively slow week for digital asset investment products in terms of trading volume. The report highlighted how trading volumes in ETPs (Exchange Traded Products) fell to $8.2 billion compared to the prior week’s total of $10.6 billion. This drop in trading volume was well evident in the figures that the Spot Bitcoin ETFs recorded last week.
Notably, these funds recorded a daily trading volume of $924 million on February 1 last week, the first time that the trading volume was under $1 billion. This trend continued the next day, with the Spot Bitcoin ETFs combined recording $922 million in trading volume.
Bloomberg analyst Eric Balchunas, however, suggested that there was no need to be alarmed. He noted in an X (formerly Twitter) post how there is usually a slow decline after a big, hyped launch. What is, however, evident is the fact that these funds have lived up to the hype so far. BlackRock and Fidelity alone (the top two issuers by AuM, excluding Grayscale) now hold over 134,358 BTC ($5.7 billion) for their Spot Bitcoin ETFs.
Interestingly, their funds also made the top 10 of all ETF inflows in January. This shows an impressive interest in the funds and that institutional adoption of the flagship crypto token is on the rise.
Bitcoin Trade Volumes Beat YTD Average As Inflows Resume: Are Bulls Taking Over?
Bitcoin, the world’s largest cryptocurrency, has had a few progress and setbacks in the past year. This has been reflected in digital asset investment products. However, new data shows that while outflows from digital investment products have dominated for another week, Bitcoin has shown some resilience to record a weekly inflow of $3.8 million.
Bitcoin Trading Volume 90% Above The YTD Average
In its latest report on digital asset investment products, Coinshares has shown Bitcoin investment products received net inflows despite the whole market seeing minor outflows. During the same time period, trading volumes spiked to more than 90% above the YTD average.
Regulatory issues have bombarded BTC in the past week, and the asset has shown uncertainty about what’s next to come. In particular, August concluded with a Bitcoin setback as the SEC announced a decision to delay its ruling on some Bitcoin spot Exchange Traded Funds (ETFs) applications.
As a result, the price of BTC dropped from $28,000 to $25,400 in the space of 48 hours. But despite this decrease, digital asset investment products trading volume reached $2.8 billion.
Outflows in digital asset funds have been consistent for the past seven weeks, totaling $342 million. Last week, chains like Polygon and Ethereum saw outflows of $8.6 million and $3.2 million, respectively, contributing to a total net outflow of $11.2 million across all assets.
On the other hand, Bitcoin registered net inflows of $3.8 million. Solana also registered net inflows of $0.7 million, bringing its inflow streak to nine consecutive weeks. However, total assets under management (AuM) have fallen 48% from this year’s peak.
Is A Shift Toward Positive Sentiment Imminent?
The uptick in activity and investment is a good sign for the market and hints at growing mainstream interest in Bitcoin. However, this could end up being short-lived. Considering BTC is just like any other asset, sentiment is mostly based on news surrounding the crypto industry. So a consecutive weekly inflow to Bitcoin digital asset funds would suggest a change in sentiment.
The outlook for BTC and the broader crypto market for the rest of 2023 is still cautiously optimistic. Experts from JP Morgan have predicted that the SEC will be forced to greenlight several spot Bitcoin ETFs, and former US Securities and Exchange Commission (SEC) Chair Jay Clayton, has also called the approval inevitable.
Nevertheless, the past 24 hours have seen the trading volume of Bitcoin increase by more than 11% to reach $10.87 billion. Of course, higher trade volumes don’t necessarily mean prices will skyrocket. But they show more people are buying and selling BTC, indicating stronger sentiment and momentum.
Institutional Investors Remain Bullish As Short Bitcoin Sees Outflows
Institutional investors have swung between bearish and bullish when it comes to bitcoin for the better part of this year. Each time though, the direction of their money always shows how they are currently looking at the crypto market. The same is the case for the past week, where numbers have pointed towards more bullishness for these large investors.
Short Bitcoin Outflows Continue
Since the market began its recovery trend, short bitcoin has been seeing outflows. The ETF had been quite popular and successful when it was launched earlier this year, giving the perfect timing to being launched when the crypto winter was just beginning. However, outflow figures are showing that institutional investors are gradually abandoning their bearish stance on the digital asset.
The prior week had come with outflows for short bitcoin to the tune of $15 million, which represented 10% of total assets under management (AuM) at the time. Last week marked a second consecutive week of outflows for the fund with another $2.4 million, bringing its total outflows since September to $20 million. This figure now represents 15% of AuM for the fund from mid-September until the present.
BTC price fails to hold $20,500 | Source: BTCUSD on TradingView.com
As expected, the opposite was the case with long bitcoin that saw inflows of $14 million for last week. The prior week had also seen the digital asset record $4.6 million in inflows. Even though these inflows remain minor, it goes to prove institutional investors remain very bullish. It has now marked its seventh consecutive week of inflows.
Behind The Bullishness
The general sentiment behind bitcoin has been more bullish than not and the Twitter deal with Elon Musk has been a major driver behind this. The billionaire is a staunch supporter of cryptocurrencies, which has led many to believe that he would end up promoting the use of bitcoin and other digital assets on the platform.
On the back of the deal completion, the value of cryptocurrencies has skyrocketed during this time. Bitcoin had been able to retest the $21,000 for the first time in more than a month. Naturally, other assets in the space have followed this trend.
However, there is a slight decline in positive sentiment due to the wait for the decision from the Fed. Another interest rate hike would no doubt be detrimental to the crypto market, causing investors to take defensive positions as the market awaits the Fed’s statement.
Featured image from Blockchain News, chart from TradingView.com
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Investors Cash Out $5M From 7-Week Bull Run On Short Bitcoin
Short bitcoin has been at the forefront of investors’ attention over the last few months. Since it launched, it has garnered an impressive asset allocation and has not eased up. This is not surprising as the market had begun another bear run. However, last week, investors began to move the other way when it comes to short bitcoin. Inflows have now turned to outflows.
Bitcoin Investors Begin Profit-Taking
The CoinShares Digital Asset Fund Flows weekly report shows that investors have turned towards outflows for short bitcoin. For the past 7 weeks, short bitcoin had been enjoying consecutive inflows as the price of the digital asset had nosedived. Now, it seems that these investors have begun to enjoy the spoils as they begin taking money out.
For the first time in more than two months, short bitcoin outflows came out to a total of $5.1 million. Interestingly, the total asset under management (AuM) for the short BTC remains high at $172 million, a new record high for the digital asset. So even though investors have been pulling out money, it only shows that there is profit-taking going on and not necessarily a shift in sentiment toward the investment vehicle.
BTC recovers above $20,000 | Source: BTCUSD on TradingView.com
On the flip side, long bitcoin only saw minor inflows. This is also in line with the increased interest in short BTC. With inflows totaling $0.1 million for the 7-day period, it goes to show that institutional investors are still very bearish when it comes to the digital assets. Bitcoin’s total AuM has now dropped to a new 3-month low of $15.9 billion.
Inflows In Other Areas
When it comes to outflows, most of it seemed to be localized to the short bitcoin alone. Other digital assets, such as Ethereum, saw inflows for the week. The digital asset, which is the second-largest cryptocurrency by market cap, had been seeing a lot of interest due to the completed Merge, which brought in inflows of $7.7 million for the week. However, all sentiment was not bullish, given that the recently launched Short Ethereum investment product had recorded $1.1 million in inflows.
Some altcoins also saw minor inflows during this period. Assets such as Cosmos and XRP got some attention from institutional investors, with inflows reaching $0.4 million and $0.5 million, respectively, during the one-week period. Additionally, multi-asset investment products saw inflows reaching $1.8 million for the same time period.
The majority of the inflows had come from Europe, totaling $15 million for this time period. While across the pond, North America showed more bearish sentiment. The outflows were localized to this region, reaching $9.4 million.
Featured image from ZenLedger, charts from TradingView.com
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Bitcoin Bullish Signal: Whale Exchange Inflows Remain Down
On-chain data shows the Bitcoin whale exchange inflows have remained down after hitting a local peak a while back, a sign that could prove to be bullish for the price of the crypto.
Bitcoin Whales Aren’t Sending Many Coins To Exchanges Right Now
As pointed out by an analyst in a CryptoQuant post, the BTC inflows made a peak recently and have remained down since, a signal that the bottom may be in for the coin.
The “all exchanges inflow” is an indicator that measures the total amount of Bitcoin being transferred to wallets of all centralized exchanges.
When the value of this metric is elevated, it means a large number of deposits are being made on exchanges right now. Since investors usually send their coins to exchanges for selling purposes, such values of the indicator can be bearish for the price of BTC.
On the other hand, low inflow values suggest a healthy amount of selling may be going on in the market right now. Depending on whether the outflows (the opposite metric) are raised or not, this kind of trend can be either bullish or neutral for the value of the crypto.
Now, here is a chart that shows the trend in the Bitcoin all exchanges inflows over the last few years:
The value of the metric seems to have been low in recent days | Source: CryptoQuant
As you can see in the above graph, the Bitcoin exchange inflows hit a peak a while back, following which the crypto sunk down below $18k.
The chart also includes the data for two other indicators, the “top 10 whale inflows” and the 7-day average of the total inflows.
The former metric gives the sum of the ten largest deposits going to exchanges. These transfers are generally assumed to be from whales, so that this indicator gives us an idea about the current selling behavior of these humongous holders.
It looks like both the whale inflows and the 7-day mean total inflows have made a similar pattern in recent weeks.
Historically, the trend of a sharp inflow spike followed by low values has been a sign of bottom formations for the crypto.
As whales, and other investors as well, aren’t putting too much selling pressure on the market right now, it’s possible that Bitcoin may see a bullish outcome in the coming future.
BTC Price
At the time of writing, Bitcoin’s price floats around $23.2k, down 5% in the past week.
Looks like the value of the crypto has been consolidating sideways recently | Source: CryptoQuant
Featured image from Sandra Seitamaa on Unsplash.com, charts from TradingView.com, CryptoQuant.com
Here’s What Bitcoin Institutional Inflows Says About The Month Of July
The price of bitcoin has had an eventful start to the month of August, and it doesn’t look like it will be stopping anytime soon. Mostly, it is the residual effects of what happened in the markets during the month of July, where the price of bitcoin had actually broken above $24,000. In the same vein, the institutional inflows have a lot to say about bitcoin, especially when it comes to how big money is looking at the digital asset.
Bitcoin Inflows Grow Strong
Bitcoin inflows for the month of July had actually maintained a steady uptrend. The digital asset was able to receive another $85 million worth of inflows for the last week of July, mostly for long bitcoin. At the same time, short bitcoin continued to decline with $2.6 million in outflows for the week.
Others in the space also enjoyed inflows, and by the end, it came out to be the strongest month of inflows so far for the year 2022. This is because there had been a recorded $474 million, which had almost made up for the outflows that had rocked cryptocurrencies in the month of June with a total of $481 million.
BTC trading at $22,900 | Source: BTCUSD on TradingView.com
This now makes it the 5th consecutive week of inflows for all digital investment products, most of which had come from North America. Canada had brought in $67 million while the United States recorded a much lower $15 million.
Across the pond, countries such as Brazil and Sweden also contributed to the inflows, albeit to a lesser degree. Others who saw minor inflows include Solana and Polkadot, with $1.5 million and $0.4 million, respectively.
What This Says For The Market
The reversal of the outflow trend in the month of July follows the recovery in investor sentiment over the last couple of weeks. It shows that retail investors are not the only ones feeling more bullish about the market, but institutional investors were beginning to feel the impact of the recovery too.
Most prominent has been bitcoin which has enjoyed the most of these inflows. And although Ethereum failed to make a marked recovery from institutional investors, it, too, had been seeing growing confidence in the market lately.
Essentially, the turn in the tide has come despite low trading activity in the space. Net flows from exchanges continue to point towards an accumulation trend that mirrors this bullish sentiment. Since investors are bringing this bullish trend from the month of July into August, it is quite possible that there is more recovery to come in the market.
Featured image from BitIRA, chart from TradingView.com
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Outflows Rock Bitcoin As Institutional Investors Pull The Plug, More Downside Coming?
Outflows have been the order of the day since the price of cryptocurrencies such as Bitcoin had begun to crash. The same sentiment had spread through individual as well as institutional investors, leading to massive sell-offs in the space. Despite the price of bitcoin recovering in recent times, it seems that the sellers are not done just yet as outflows had ramped up over the last week.
$453 Million Leaves Bitcoin
Bitcoin had been seeing a reversal trend with inflows coming in for the prior week. However, this has only been short-lived as outflows have continued to rock the digital asset. For the last week, CoinShares reports that bitcoin had led the outflow trend and the net outflows had come out to $453 million for the digital asset. It is one of the largest outflows ever recorded for the digital asset and has wiped out the majority of inflows on a year-to-date basis.
Related Reading | Bitcoin May Not Reclaim All-Time High For Another Two Years, Binance CEO
This comes as bitcoin’s price had continued to fluctuate around $20,000 over the last week. It was expected that the low prices would trigger more inflows into the market for the past week but the opposite has been the case. The total assets under management (AuM) for bitcoin now sits at $24.5 billion, the lowest it has been in more than a year.
BTC recovres above $21,000 | Source: BTCUSD on TradingView.com
Its short-bitcoin counterpart had gone a different path this week where inflows had been the order of the day. The $15 million that flowed into it is said to be a result of the first US-based short investment product which launched last week. Given that the older short-bitcoin investment products had recorded outflows for the same time frame, all fingers point towards the launch.
Ethereum also saw inflows, a first in three months. It came out to a total of $11 million flowing into the altcoin after suffering 11 weeks of outflows.
North American Outflows Grow Worse
The outflows have been localized to one specific region and that is the North American corner of the market. CoinShares notes that the majority of the outflows had come from Canadian exchanges. Specifically, one provider. Most of the outflows had been seen on 17th June but did not show up until last week. It shows that these sell-offs had been a trigger for bitcoin’s decline to $17,700.
Related Reading | Crypto Liquidations Settle As Bitcoin Recovers Above $21,000
Digital asset investment product outflows were just as large with $423 million flowing out of the market, a new record for the space. However, given the lag that led to the trades from the Canadian exchanges updating late, it is important to know that these outflows were not from last week alone. When these outflows are removed and marked to their correct time frames, it shows that inflows of $70 million had been recorded by other providers.
The last time record outflows were seen was at the start of the year when $198 million had left the market in a single week in January. The outflows recorded for last week have surpassed this by more than 100%, although the ratio to the assets under management remains low compared to the bear market outflows of 2018 where outflows had reached as high as 1.6% of total AuM.
Featured image from MARCA, chart from TradingView.com
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Bullish: Bitcoin Marks First Green Weekly Close After Two Months In The Red
Bitcoin has been marking multiple weeks of consecutive red closes. This has been the case for the last two months when the leading cryptocurrency had seen 9 consecutive weeks of red closes. Unsurprisingly, this had pained a very bearish image for the digital asset. However, it seems the tide has begun to turn as bitcoin has now ended its streak. A break above $30,000 in the early hours of Monday put BTC in its first weekly close in more than two months.
Better Days Ahead For Bitcoin?
While the price of bitcoin has been in recovery, it does not exactly erase more than two months of bearish trends. This first green in a long line of reds does not automatically trigger a bull trend for the digital asset. What it does, however, is show that investor sentiment is starting to turn for the better. No doubt the sellers will continue to dominate the market for the better part of the next week but an uptick in positive inflows is expected from here.
Related Reading | Brace For Impact: Bitcoin Miners Have Begun Dumping Their Holdings
Bitcoin has not had a green weekly close since the month of March. Even before then, sentiment had turned for the worse. This continues into the new week as the Fear & Greed Index is currently sitting at 13, putting it in extreme fear. BTC’s rise above $32,000 last week had worked to help ease the fear in the market but negative sentiment had returned once more with the crash below $29,000.
BTC settles above $31,000 | Source: BTCUSD on TradingView.com
What is expected from here on out is shaky movements for BTC. The digital asset needs to secure a position above $35,000 for it to be considered back on another bull trend. However, multiple significant resistance points lie ahead for the cryptocurrency.
What Exchange Inflows Say
Bitcoin exchange inflows mirror the positive sentiment that is returning to the market. Data from Glassnode shows that for the last day, there have been $6.6 billion in BTC moving into exchanges while $7.9 billion has been moved out. This works out to a negative net flow of -$1.3 billion, signaling that more investors are moving towards accumulation instead of outright sell-offs.
Weekly On-Chain Exchange Flow #Bitcoin $BTC
$6.6B in
$7.9B out
Net flow: -$1.3B#Ethereum $ETH $3.3B in $3.2B out
Net flow: +$108.6M#Tether (ERC20) $USDT $3.4B in $4.2B out Net flow: -$781.3Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) June 6, 2022
Related Reading | El Salvador Postpones Bitcoin Bonds A Second Time, Here’s Why
Bitcoin remains a long way off from its all-time high and indicators point to recovery to that ATH value being years away. Nevertheless, for the short-term, the price of bitcoin is poised to hold up against bears. Since the majority of BTC investors are still in profit, it is not expected that the sell-offs will die off anytime soon though. But it is nearing an exhaustion point.
Featured image from The Cryptonomist, chart from TradingView.com
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Bitcoin Exchange Outflows Suggest That Investors Are Starting To Accumulate
Bitcoin exchange outflows have been turning for the better recently. What had predicated this was a long week of inflows surpassing outflows, solidifying the fact that it was a seller’s market. However, the tide has begun to turn as the Monday numbers are in. Bitcoin exchange outflows have now surpassed inflows by a large margin.
Investors Are Accumulating
Glassnode has published exchange inflow and outflow data which points toward an accumulation trend among investors. For the start of the week, the inflows into centralized exchanges had touched $1.1 billion, a high number. But the outflows came out even higher. Bitcoin investors have moved $1.4 billion out of centralized exchanges in the last day. This has resulted in a negative net flow of -$325.3 million.
Related Reading | Negative Sentiment Deepens In Crypto, Why Recovery May Not Last
The same trend was recorded across the second-largest cryptocurrency, Ethereum, whose net flow had come out to the negative as well. In total, there was $476 million worth of ETH moving into exchanges. However, $487 million were moved out of exchanges, bringing the negative net flow to -$11 million.
This trend also mirrors that recorded in the Tether UST net flows. Inflows have surpassed outflows by more than $126 million, indicating that more investors are choosing to accumulate more cryptocurrencies such as bitcoin and Ethereum and moving out of stablecoins such as USDT.
Daily On-Chain Exchange Flow#Bitcoin $BTC $1.1B in $1.4B out Net flow: -$325.3M#Ethereum $ETH $476.0M in $487.0M out Net flow: -$11.0M#Tether (ERC20) $USDT $510.1M in $383.7M out Net flow: +$126.4Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) May 31, 2022
Bitcoin Whales Not Left Out
It is no surprise that bitcoin whales are often seen accumulating when the price of the digital asset is down. For most, this presents an opportunity for them to get as many coins as they can at a discounted price, causing them to increase their holdings significantly.
This time around, the number of addresses holding more than 10K BTC has seen one of the most apparent accumulation trends. It reached a new all-time high and there are now 97 BTC addresses holding more than 10,000 BTC in them, marking a new 15-month high.
BTC price reverses as it drops to $31,500 | Source: BTCUSD on TradingView.com
The number of addresses holding more than 0.1 BTC has also reached a new all-time high. This number has risen to 3,525,636, suggesting that not only are the whales accumulating, but smaller bitcoin addresses are also jumping in on the action.
Related Reading | Billionaire Tim Draper On What Will Trigger The Next Bitcoin Bull Market
Active supply has also declined significantly and is now sitting at a six-month low. There has been a little over 1.19 million BTC that have been active in the last 1-3 months. The previous low was 1.2 million BTC which was recorded at the beginning of December 2021.
Bitcoin is trading at $31,700 at the time of this writing. The recovery trend which had begun on Monday continues to grow stronger causing the digital asset to cement its position above $31,000.
Featured image from VOI, chart from TradingView.com
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Bitcoin Institutional Outflows Near One-Year Highs, More Downside Coming?
With the price of bitcoin still trading below $40,000, institutional inflows into the digital asset have slowed significantly. This has now flowed into other digital assets in the space. But what is most significant is the outflow rate which has neared one-year lows.
Bitcoin Outflows Grows
For the past couple of weeks, the rate at which institutional investors have been pulling money out of bitcoin has been on an accelerated timeline. This is what has culminated in the outflows that were recorded for the digital asset last week.
In the space of a week alone, bitcoin had seen the majority of outflows from the market, which had come out to $120 million for the past week. These outflows had put it dangerously close to its one-year outflow record that was set back in June 2021, at $133 million leaving the digital asset.
Related Reading | ADA On Discount? Cardano Whales Go On $200M Shopping Spree
It was not the only asset to suffer outflows for the week though. Blockchain equities that had mainly been resistant to the outflow trend had finally succumbed. It had seen a total of $27 million left as negative sentiment continues to grow among institutional investors.
Ethereum also continued the outflow trend. A total of $25 million had left the digital asset, bringing its year-to-date outflows to $194 million.
BTC trending at $38,000 | Source: BTCUSD on TradingView.com
This marks the 4th consecutive week of outflows in the market. It now sits at a total of $339 million that has left the market in this 4-week period. It also reflects a generally bearish sentiment that is being felt across the market as the Fear & Greed Index had dived into the extreme fear territory.
Despite this overwhelming negative sentiment, not every digital asset in the space had suffered the same fate. FTX Token came out as the unlikely winner of the week by bringing in the largest inflows. The digital asset spearheaded the inflow trend with a total of $38 million moving into the asset last week.
Related Reading | Experts Say Ethereum Will Grow 100% To Hit $5,783 By Year-End
Other large altcoins mainly followed this trend through with big players such as Terra and Fantom. Although these digital assets had not done nearly as well as FTX Token but had seen inflows regardless. It had come out to $0.39 million and $0.25 million recorded respectively for both.
Bitcoin still remains an investor favorite despite the inflows though. It continues to hold steady at the $36,000 to $38,000 support level. Its price had briefly recovered above $39,000 in the early hours of Wednesday before declining to be trading at $38,935 at the time of this writing.
Featured image from MARCA, chart from TradingView.com
Bitcoin Exchange Outflows Suggest Rally May Only Be Starting
Bitcoin exchange inflows and outflows continue to be a way to determine what investors are doing with their coins. These usually follow a trend either in a bull or a bear market and deviate when there is a change in the market. This time around, with the market back in another surge, looking at the exchange net flows paints a rather positive picture. This is because bitcoin outflows continue to dominate in this regard.
Bitcoin Outflows Ramp Up
For the past week, the price of bitcoin has been on an uptrend. This recovery which had started on Monday had raged on through the week, seeing the digital asset finally break above $47,000 for the first time in three months. Speculations have abounded in the space since then as to how long recovery like this can last. As such, investors will look to metrics like exchange inflows and outflows to determine if investors are buying or selling.
Related Reading | Why The Latest Correction Is Good For Bitcoin
For bitcoin, the numbers have been favorable towards a continuous rally. Looking at on-chain data shows that outflows still surpass inflows by a large margin. Glassnode Alerts posted a report that showed that while inflows were at $7.9 billion for the past week, there was a total of $9.5 billion worth of bitcoin leaving centralized exchanges. This came out to a negative net flow of -$1.5 billion.
Weekly On-Chain Exchange Flow #Bitcoin $BTC $7.9B in $9.5B out Net flow: -$1.5B#Ethereum $ETH $5.1B in $6.8B out Net flow: -$1.7B#Tether (ERC20) $USDT $4.9B in $4.4B out Net flow: +$451.8Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) April 4, 2022
Data like this suggests that investors are selling less than they are buying. Given that such high volumes are leaving the exchanges, it is expected that investors prefer to accumulate their coins during this time rather than sell. Therefore, since more BTC is being removed from exchanges than that moved to be sold, there is less supply in the open market, causing fewer coins to be available for demand, leading to a higher value.
Tether Shows Better Metrics
Bitcoin’s net flows are not the only thing that suggests that the rally is just in its beginning stages. Now, Tether (USDT) has the largest pairing of any other cryptocurrency in the market with bitcoin. This usually provides a direct correlation with how investors are moving their Tether in and out of the exchanges to bitcoin’s price.
BTC drops to $46K | Source: BTCUSD on TradingView.com
For the last week, Tether inflows had ramped up too. A total of $4.4 billion in inflows were recorded while there was a total of $4.9 billion Tether moved to exchanges. It is presumed that such volumes being moved to the exchanges are for the purposes of purchasing cryptocurrencies like bitcoin.
Related Reading | Light Speed: Kraken, Another Giant Exchange Integrates The Lightning Network
Given this and the fact that bitcoin exchange outflows keep growing, there is still significant buy pressure in the market. Coupled with the accumulation trend among bitcoin investors, bitcoin may only be starting out on this rally.
Featured image from The Financial Commission, chart from TradingView.com
Exchanges See Billions In Bitcoin leave As BTC Maintains Above $40,000
Bitcoin’s stint above $40,000 continues as the market ushers in another week of trading. The weekend had been a rollercoaster for investors but prices have since started to level out. With the break above $40,000 last week, faith has gradually returned to the market, causing more people to invest in the digital asset. Amid this has emerged an accumulation pattern that suggests a bullish outlook for the long-term.
Exchange Outflows Rise
Over the past week, bitcoin exchange outflows have been on the rise. This is marked by the recovery of the digital asset’s value above the $40,000 level. This coveted level can be elusive for the cryptocurrency. However, with so many breaks above it in the first three months of the year, it has been able to garner enough support to enter an accumulation trend.
Related Reading | Fiat – Not Crypto – Still The Top Choice For Financial Crimes, US Treasury Says
Data from Glassnode shows that the previous week has seen more exchange outflows than inflows. Recording the daily numbers via reports shows that on a daily, bitcoin investors are choosing to move their coins out of these (centralized) exchanges to other wallets. An example of this was Saturday which saw $1.6 billion in BTC leaving exchanges in a single day.
On the weekly scale, the outflows have continued to surpass inflows, although not by a large margin. In a recent report, the on-chain data aggregator showed that $6.3 billion in BTC left exchanges compared to the $6 billion that were moved in.
Weekly On-Chain Exchange Flow #Bitcoin $BTC $6.0B in $6.3B out Net flow: -$298.2M#Ethereum $ETH $5.2B in $6.7B out Net flow: -$1.5B#Tether (ERC20) $USDT $4.1B in $4.2B out Net flow: -$99.0Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) March 21, 2022
Bitcoin Investors Are Accumulating
This trend of outflows surpassing inflows usually points towards one thing and that is the fact that investors are accumulating. Market trends can have a big impact on this, especially if the price is low. However, with bitcoin touching as high as $69K last year and now only trading at $41,000, a lot of investors might see this as a good time to fill up their bags while they wait for the price to recover towards another all-time high.
BTC recovers above $41K | Source: BTCUSD on TradingView.com
Another reason for exchange outflows being so high is for safekeeping. A saying in the crypto space that is used a lot is “Not your keys, not your coins.” This simply means that for an investor’s coins to be truly safe, they have to keep it in a wallet whose private keys they control and that is not the case on exchanges.
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Instead, investors prefer to remove their coins from these exchanges and send them to wallets that they control. This is especially important for investors who are holding their coins for the long term. This way, they are safe if anything, say a hack, happens to an exchange. It also keeps investors’ wealth from being controlled by any governmental entities.
Featured image from NewsBTC, chart from TradingView.com
Bitcoin Inflows Suggest Institutional Investors Are Moving Back Into The Market
Bitcoin and the crypto market at large had suffered outflows that coincided with the massive sell-offs that rocked the market. This contributed to the downtrend that saw bitcoin touch towards six-month lows while investors who had gotten into the market later suffered massive losses. This outflow trend is beginning to reverse so as bitcoin and other digital assets begin to record inflows after a long drought.
Bitcoin Inflows Back Up
The past week for bitcoin has been an encouraging one. The digital asset is nowhere near its previous highs but had managed to recover from its recent lows. It had run up to $38,000 once again, reinstating some level of faith back in the market. On the institutional investors’ side, this trend, albeit a bit slower, is the same as investors begin to gradually move back into the cryptocurrency.
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In the latest CoinShares report, we see that bitcoin has begun to record market inflows once more. This is a deviation from the end of 2021 and the beginning of 2022 where outflows reached record highs. Greatly impacted by the minutes released by the Fed, bitcoin alone had recorded outflows to the tune of $107 million in a single week, setting a new record.
BTC recovers from market crash | Source: BTCUSD on TradingView.com
However, in the past two weeks, the tide is turning towards inflows as CoinShares reported the first week of inflows after massive outflows. This past week continues to mirror this trend as inflows have continued.
Inflows to bitcoin were reported to total $22 million for last week. A small number compared to what had become the norm by the third quarter of 2021, but a reassuring figure nonetheless. It’s a step up from last week when BTC’s total AuM crashed to a six-month low of $29 billion.
Altcoins Continue To Suffer
Altcoins have not mirrored this movement of bitcoin this time around. Instead, altcoins continue to bear the brunt of the market onslaught as outflows continue to be the order of the day.
Leading altcoin Ethereum has now marked its 8th consecutive week of inflows. In this time period, the altcoin has seen a total of $272 million flow out of the week, marking some of the highest negative sentiment towards the digital asset.
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Other altcoins like Cardano, Solana, and Polkadot, which are fast-becoming investor favorites, did not fare well for the week either. All of these digital assets saw another week of outflows.
Multi-asset funds and Blockchain equity investment products deviated from the performance of altcoins. Following in the footsteps of bitcoin, each of them recorded inflows for the week, $32 million for multi-asset funds, and $15 million for Blockchain equity investment products.
Featured image from Bitcoin News, chart from TradingView.com
Bitcoin Bearish Signal: Binance Observes Massive Inflow Of 10k BTC
Bitcoin on-chain data shows the crypto exchange Binance observed large inflows amounting to almost 10k BTC yesterday.
Bitcoin Netflow Shows A Huge Positive Spike As 10k BTC Enters Binance
As pointed out by an analyst in a CryptoQuant post, the BTC netflow had a big positive spike yesterday, a sign that’s usually bearish for the price.
The “all exchanges netflow” is an indicator that measures the net amount of Bitcoin entering or exiting wallets of all exchanges. The metric’s value is simply calculated by taking the difference between the inflows and the outflows.
When the indicator has positive values, it means there are currently more inflows happening than outflows. Such a trend is often bearish as investors usually deposit their Bitcoin for selling purposes.
On the other hand, when the value of the metric is negative, it implies outflows are overwhelming inflows as a net amount of BTC is exiting exchanges. This kind of trend can be bullish for the price of the crypto as holders generally withdraw their coins to hold them.
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Now, here is a chart that shows the trend in the Bitcoin netflow over the last couple of months:
Looks like the value of the metric showed a huge positive spike recently | Source: CryptoQuant
As you can see in the above graph, yesterday the Bitcoin netflow showed that almost 10k BTC entered exchanges yesterday within an hour.
A look at the chain data reveals these inflows were to Binance. Interestingly, just a few hours later, the crypto exchange Gemini observed an outflow of about 10k BTC, cancelling out these inflows and making the netflow neutral again.
The negative spike makes up for the positive one from a few hours earlier | Source: CryptoQuant
As mentioned earlier, inflows are usually bearish for the price of Bitcoin. However, since outflows of the same amount occurred just a couple of hours later, the netflows effectively became neutral.
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Now, outflows can be bullish for the price if they occurred for the purpose of accumulation. But that doesn’t necessarily have to be the case. If the investors who were behind the withdrawal intend to sell them through OTC deals, the effect on the price may be bearish instead.
BTC Price
At the time of writing, Bitcoin’s price floats around $36.8k, down 12% in the last seven days. The below chart shows the trend in the value of the coin over the last five days.
BTC’s price has retraced a lot of the recovery that it made over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradignView.com, CryptoQuant.com
Bitcoin Bearish Signal: Trend Is Again Shifting From Outflows To Inflows
On-chain data shows Bitcoin netflow trend is once again shifting from outflows to inflows, a sign that could prove to be bearish for the crypto.
Bitcoin Netflow Trend Is Changing To Inflows From Outflows
As per the latest weekly report from Glassnode, BTC netflows have once again started to move from a trend of net outflows to more inflows.
The “all exchanges netflow” is an indicator that measures the net amount of Bitcoin entering or exiting wallets of all exchanges. The metric’s value is calculated by simply taking the difference between the inflows and the outflows.
When the indicator has negative values, it means outflows are overwhelming inflows as a net amount of BTC is being transferred out of exchanges. Investors usually withdraw their coins from exchanges for accumulation purposes. And so, such a trend can be bullish for the crypto.
On the other hand, positive netflow values signify that a net amount of Bitcoin is being deposited into exchange wallets. Since holders generally move their crypto to exchanges for withdrawing to fiat or for purchasing altcoins with them, such values of the indicator may be bearish for the coin.
Now, here is a chart that shows the trend in the BTC netflow over the course of 2021:
Looks like BTC inflows are on the rise | Source: The Glassnode Week Onchain (Week 52)
As you can see in the above graph, the netflows have been oscillating between the +5k BTC and -5k BTC lines throughout the year.
Though there have been some brief periods where the indicator’s value broke out of this range, but overall the trend has been consistent.
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Looking at the chart, it seems like the indicator is currently shifting towards inflows again, after a period of big outflows.
The report notes that it’s worth keeping an eye on this trend to see if these inflows intensify or rather decline towards the start of the new year.
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If the inflows do sustain for a while, then the outlook could be bearish for the price of BTC, similar to back in May of this year.
BTC Price
Bitcoin’s price reached almost $52k yesterday, but has since declined again. At the time of writing the crypto’s price floats around $49.2k, up 0.5% in the last seven days. Over the past thirty days, the coin has lost 9% in value.
The below chart shows the trend in the price of BTC over the last five days.
BTC’s price seems to have plunged down in the past 24 hours | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com
Bitcoin Inflows Shows Institutional Investors Are Back On The Bull Train
Bitcoin recovered above $50K on Tuesday following a rallying that pulled the market back into the green. October has so far been good for the digital asset and investors have begun to return again into the market amid recovering prices. On the investment front, inflows show that institutional interest in bitcoin is returning after inflows had fallen short of expectations in the previous weeks.
Bitcoin Makes Up 76.6% Of Weekly Inflows
A report published by CoinShares shows that bitcoin inflows had picked back up. Altcoins had been taking more market share as their popularity grew due to the rise of decentralized finance (DeFi) networks like Ethereum and Solana. These assets had dominated market inflows as investors had flocked to profit from their growth. Altcoins had seen the largest shares of market inflows throughout the month of September. But the close of the month had shown a decisive turn in institutional investors’ sentiments.
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The report showed that institutional inflows were $90 million for the previous week, and bitcoin alone had seen inflows of $69 million. This accounted for 76.6% of the total inflows, showing that institutional investors are not turning their attention back to bitcoin. The highly appreciative asset has a proven track record of long-term success and its recent turn in prices has been evidence of that.
Investors’ confidence in BTC is on the mend. The Fear & Greed Index moved into greed, showing mounting buying pressure on the market. Bitcoin and its related products are seeing increased interest from investors, and most importantly, big money is moving back into the asset.
BTC breaks $52K resistance point | Source: BTCUSD on TradingView.com
Market Inflows Pick Up As Altcoins Concede
Inflows in the market have picked up in recent weeks. This marks the 7th consecutive week of inflows and a total of $411 million has moved into the market. Altcoins have given up some of the market shares which they had pinched from the top cryptocurrency. Ethereum inflows for the week had totaled $20 million, down 3% from its peak to only 25% of total inflows.
Related Reading | Bitcoin Shakes Off Bloody September As Price Breaks $50K, Headed For New All-Time Highs?
Solana which had dominated inflows for a while in September had recorded a significant drop in inflows. The asset recorded only minor inflows of $0.7 million. Alongside other altcoins which had suffered the same fate. Cardano, the third-largest cryptocurrency by market cap, only saw inflows totaling $1.1 million. While Polkadot, Tezos, and Binance each recorded inflows totaling $0.8 million.
Volumes have however remained low despite inflows. At the height of the bull market in May, volumes had reached $8.4 billion. Now, volumes are at a low of $2.4 billion, representing an over 70% drop from their peak in May.
Featured image from Coinnounce, chart from TradingView.com
BTC sinks below $40K, Bitcoin inflows to centralized exchanges surge
High Bitcoin inflows to centralized exchanges have prompted predictions of further bearish momentum on social media.
