Grayscale’s Bitcoin ETF saw substantial investment outflows that surpassed the $66.9 million it had attracted just a few days earlier.
Bitcoin Whales Bought The Recent Dip While Market Panicked
On-chain data suggests the Bitcoin whales may have participated in a significant amount of buying while the market was panicking about the recent lows.
Bitcoin Exchange Netflow Has Been Quite Negative Recently
An analyst in a CryptoQuant Quicktake post pointed out that the exchanges have recently seen outflows. The indicator of interest here is the “exchange netflow,” which keeps track of the net amount of Bitcoin entering or exiting out of the wallets of all centralized exchanges. The metric’s value is calculated by subtracting the outflows from the inflows.
When the indicator has a positive value, the inflows overwhelm the outflows, and a net number of coins moves into these platforms.
As one of the main reasons investors may want to deposit their BTC to the exchanges is for selling purposes, this trend can have bearish implications for the cryptocurrency.
On the other hand, the negative metric implies withdrawals are taking place, which can be a sign that the holders are accumulating right now. Such a trend could naturally turn out to be bullish for the asset’s price.
Now, here is a chart that shows the trend in the Bitcoin exchange netflow over the past year:
The above graph shows that the Bitcoin exchange netflow has observed some deep negative spikes recently. This suggests that some large outflows have been occurring from these platforms.
Interestingly, these withdrawals came as BTC slipped towards the $41,600 level, implying that some investors were potentially buying while the rest of the market was panicking about the drawdown.
Given the large scale of the deposits, it’s likely that whale entities were behind them. The fact that these humongous holders were willing to risk accumulating at these recent prices could be a positive sign for the continuation of the rally.
Microstrategy has also just announced its massive $615 million BTC acquisition, which can naturally be another optimistic sign for the coin. The exchange netflows occurring ahead of the announcement are interesting, though.
It’s hard to be sure if there is any connection between the two, but one possibility is that the whales who bought at these recent lows knew about the acquisitions ahead of time.
Another, and perhaps the more likely explanation, is that these large investors were looking for an entry point into the asset ahead of the potential ETF approvals, and the dip presented as good an opportunity as any to achieve so.
Whatever the case, it would seem like the moves made by the whales might have paid off so far, as the Bitcoin price has rebounded since its lows (although its recovery hasn’t been too strong yet).
BTC Price
Bitcoin had recovered to as high as $43,800 during the past day, but the asset has since slumped back down as it’s now floating around the $42,800 mark.
Institutional Investors Flee Ethereum Amid Plunge Toward $1,500
Institution crypto investors have been pulling out of the market for the better part of this year, especially as the bear market has taken hold. However, Ethereum has suffered way more than other assets in this regard with outflows dragging total assets under management (AuM) down. This comes as Ethereum has struggled after falling below the $1,600 support.
Institutional Investors Pull Out Of Ethereum
In the latest iteration of its Digital Asset Fund Flows Weekly Report, alternative asset manager CoinShares has revealed a growing aversion from institutional investors toward Ethereum.
This is characterized by a tremendous amount of outflows spanning months that has caused its asset under management to decline faster than any other crypto asset.
The outflow trend also continued into last week as a total of $4.8 million flowed out of Ethereum funds. According to CoinShares, this brings the total year-to-date outflows for the digital asset to $108 million. This figure also represents 1.6% of Ethereum’s total assets under management, the largest percentage of outflows of any asset.
This trend points to a waning interest in Ethereum from institutional investors. It is even more glaring given that altcoins such as XRP saw inflows of $0.7 million as investors pulled out of Ethereum.
The asset manager put forward that this means that Ethereum is “the least loved digital asset amongst ETP investors this year.”
Bitcoin Not Left Out
While Ethereum has undoubtedly not been a favorite of institutional investors, it was not the only large cryptocurrency plagued by outflows last week. Bitcoin, once again, saw the largest outflow volumes for the week with $69 million leaving Bitcoin funds. This is in contrast to short Bitcoin which saw a 5-month high weekly inflow of $15 million.
Blockchain equities also suffered from another week of outflows totaling $10.8 million this time around. In total, the current run of outflows has seen $294 million leave crypto and blockchain-related funds, accounting for 0.9% of the total assets under management.
This bearish sentiment among institutional investors is also highlighted by the fact that trading volumes saw a massive decline. The asset manager reported that volumes were just $754 million for last week, a 73% drop from the previous week’s figures.
Despite last week’s negative sentiment, this week seems to be working out better for the top assets with Bitcoin and Ethereum seeing trading volumes on crypto exchanges jump 96.28% and 41.16%, respectively. This could be signaling a coming reversal after a rocky weekend.
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.
Rise In Bitcoin Outflows Suggests Institutional Investors May Be Losing Faith In The Asset
This year has been marked by significant volatility across the crypto market, including for Bitcoin, which has seen both gains and losses over the course of the year. Just a month ago in the middle of July, Bitcoin crossed over $30,000 and many investors saw this as the start of another bull run.
However, things seem to have taken a turn, as the price of Bitcoin has plateaued since then. The asset is currently struggling to find a push in price, and it would seem this sentiment has flowed into digital asset funds. According to the weekly report published by digital asset manager CoinShares, Bitcoin outflows from institutional accounts have resumed in the past week.
Outflows From Digital Asset Investment Products
Outflows from digital asset investment products have spiked in recent weeks to register a three-week run of outflows. This would indicate that institutional investors might be avoiding volatile cryptos. This comes two weeks after a brief period of inflows, where Ripple’s partial victory in court and recent US inflation data led to inflows in digital asset products.
However, data shows that outflows resumed last week, and it appears that the euphoria that followed Ripple’s partial triumph against the SEC has dissipated. Digital asset investment products saw $55 million in outflows last week, with Bitcoin leading the charge with outflows of $42 million.
Other cryptocurrencies like Ethereum registered $9 million outflows, while Polygon, Litecoin, and Polkadot saw outflows of $0.9 million, $0.6 million, and $0.5 million, respectively. On the other hand, XRP and Cardano saw an increase in their respective inflows of $1.2 million and $0.1 million.
In terms of region, Canada had the most outflows of $35.9. million, and Germany followed with $11 million.
Rise In Bitcoin Outflows
Bitcoin outflows from exchanges suggest big investors may be losing faith in the popular cryptocurrency. One factor that fueled this outflow is speculations going around that the SEC might not actually approve applications for spot Bitcoin ETFs in the US. As a result, total assets under management (AuM) declined by 10% to close the week at $32.3 billion.
The speculations come as the SEC has delayed making a decision on Spot Bitcoin ETF applications multiple times. Each postponement casts more doubt on whether they will ever approve one and an outright rejection from the SEC will most likely lead to the price of Bitcoin falling to $20,000 and digital asset investment products registering more outflows.
At the time of writing, Bitcoin is trading at $26,053 and is down by 11.09% in a 7-day timeframe.
Crypto sees 5th week of outflows on ‘poor’ BTC sentiment: Coinshares
Outflows across all digital asset investment products hit $232 million over the past five weeks, with BTC-related funds leading the carnage, per Coinshares.
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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Exchange Outflows Shows Bitcoin, Ethereum Accumulation Trend Continues
Bitcoin and Ethereum outflows from centralized exchanges have been pointing toward a growing accumulation trend among investors. This saw billions of dollars worth of coins leaving exchanges weekly as investors moved them out. Even now, the exchange outflows have continued despite the recovery in the price of bitcoin and Ethereum, showing that investors are not slowing down their buying.
Bitcoin, Ethereum Net Flows Still Negative
The exchange net flows for the past two weeks have been coming out negative for both Bitcoin and Ethereum. The same has been the case on a daily basis where outflows continue to exceed inflows, leading to negative net flows.
Data from Glassnode shows that for the last day, the net flows for bitcoin reached as high as $158.5 million. There had been a total of $498 million worth of BTC flowing into exchanges, but more than $656 million had flowed out.
Ethereum saw a similar net flow trend where $170.7 million flowed into the exchanges and $212.7 million flowed out of the exchanges. This led to a negative net flow of -$42 million over the 24-hour period. On a 7-day rolling basis, ETH net flows had remained negative, but only by a small margin, according to data from IntoTheBlock.
Daily On-Chain Exchange Flow#Bitcoin $BTC $498.0M in $656.5M out Net flow: -$158.5M#Ethereum $ETH $170.7M in $212.7M out Net flow: -$42.0M#Tether (ERC20) $USDT $361.4M in $283.8M out Net flow: +$77.6Mhttps://t.co/dk2HbGwPL4
— glassnode alerts (@glassnodealerts) October 18, 2022
A Recovery On The Horizon?
The crypto market has been consolidating for a while but indicators point to a possible end to this trend. Tether (USDT) inflows into centralized also point towards this. Net flows for the stablecoin remain positive, which suggests an end to the sell-offs and a beginning of a buy trend in the market. However, it remains hard to pinpoint exactly when a significant recovery since the net flows for the last day were around $77 million.
BTC price settles above $19,500 | Source: BTCUSD on TradingView.com
Over the last 24 hours, both Bitcoin and Ethereum have moved back into the green but only small recoveries have been recorded. BTC is up 0.40% in the last 24 hours and ETH is up 0.47% in the same time period at the time of this writing.
For Bitcoin, the resistance has been mounted at $20,000, which makes it the point to beat. Ethereum’s resistance has been building up at $1,400, where even the hype from the completed Merge has not been able to help it beat this level.
Featured image from Finbold, 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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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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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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Exchange Inflows Rock Bitcoin, Ethereum As Market Struggles To Recover
With the market in turmoil, digital assets such as Bitcoin and Ethereum are seeing their prices challenged in ways that have sent shivers down the spines of investors. The downtrend had triggered massive sell-offs that had sent prices towards yearly lows. Despite the volume already being sold off, sellers look to not be done yet. This is evidenced by the volume of Bitcoin and Ethereum that has been making its way to centralized exchanges recently.
Bitcoin, Ethereum Rocked By Inflows
The inflows had been growing steadily recently and given the volume that has been going into exchanges, this growth is alarming. Top coins Bitcoin and Ethereum usually hold up best when it comes to markets like this, and though they have held up, investors seem unconvinced that they would continue to do so. This is one of the reasons why the inflows have been massive.
Data shows that more than $1.4 billion worth of Bitcoin has flowed into centralized exchanges in the last 24 hours alone. Although this is a decline from the previous day when $1.7 billion in BTC had been moved into exchanges, it significantly surpassed the outflow rate compared to the previous day.
Related Reading | How The Tether Peg Could Predict Raging Bitcoin Volatility
Outflows for bitcoin for the last 24 hours came out to $1.2 billion. What this led to was a positive net flow of $233 million.
Ethereum was not left out of this either. If anything, the second-largest cryptocurrency by market cap has been worse hit by exchange inflows. For the previous day, its inflows had touched $569 million. But unlike Bitcoin, it did not record enough outflows to offset this figure.
BTC continues downtrend | Source: BTCUSD on TradingView.com
This would continue into the Wednesday market which saw $658.2 million flowing into centralized exchanges. In the same time period, there was $651.1 million flowing out of the exchanges, which left a positive network of $7.2 million.
USDT Outflows Spell Selling
One way to indicate if investors are selling or buying Bitcoin, Ethereum, and other digital assets is through the stablecoin inflow, and lately, this flow rate has been anything but encouraging. Tuesday saw $1.1 billion USDT flowing into exchanges, marking a significant figure but the outflows came out higher. In total, there was $1.7 billion in USDT leaving exchanges, resulting in a negative $612.1 million net flow.
Related Reading | Funding Rates Fall To Yearly Lows Following Bitcoin’s Fall Below $29,000
What metrics like this show is that investors are likely turning their volatile cryptocurrencies into these stablecoins and moving them out of the exchanges for safekeeping. Mostly to provide shelter from a highly volatile market.
Nevertheless, the USDT volumes from the last 24 hours are beginning to paint a slightly better picture. While outflows had reached as high as $738.5 million for the past day, inflows were $871.4 million, a positive net flow of $132.9 million. If this trend continues, then the current selling trend could well be turned around into a buyer’s that would hopefully trigger a recovery in the market.
Daily On-Chain Exchange Flow#Bitcoin $BTC $1.4B in $1.2B out Net flow: +$223.0M#Ethereum $ETH $658.2M in $651.1M out Net flow: +$7.2M#Tether (ERC20) $USDT $871.4M in $738.5M out Net flow: +$132.9Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) May 19, 2022
Featured image from News Central TV, 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 Monthly Outflows Reach Historically High Value
On-chain data shows the Bitcoin monthly outflows have recently reached values only seen a few times before in the crypto’s entire history.
Bitcoin Exchange Outflows Now Have A Value Of 96.2k BTC Per Month
According to the latest weekly report from Glassnode, a historically high amount of BTC has exited all exchange wallets recently.
The relevant indicator here is the “exchange net position change,” which tells us the net amount of Bitcoin exiting or entering wallets of all exchanges. The metric’s value is simply calculated by taking the difference between the outflows and the inflows.
When the value of the indicator is positive, it means inflows are dominating the outflows right now, and a net amount of coins is moving into exchanges. Such a trend can be bearish for the price of the crypto as investors usually deposit their crypto to exchanges for selling purposes.
On the other hand, positive values of the metric imply there is a net amount of Bitcoin exiting exchange wallets at the moment. This kind of trend, when sustained, may prove to be bullish for the price of the coin as it can be an indication that investors are accumulating right now.
Related Reading | Bitcoin Bullish Signal: 30MA STH-SOPR Returns Above 1 After 4 Months
The below chart shows the trend in the Bitcoin exchange net position change over the history of the crypto:
Looks like the value of the metric has been highly negative recently | Source: Glassnode’s The Week Onchain – Week 14, 2022
As you can see in the above graph, the Bitcoin exchange net position change has a deep red value right now. Over the past month, there has been a net outflow amounting to around 96.2k BTC.
Such a high monthly outflow value has only been recorded a few times over the course of the history of the crypto.
Related Reading | Don’t Look Down: Bitcoin Ready To Re-Test Support Zone At $44K?
Also, looking at the more long-term trend, it seems like inflows have overwhelmed outflows for much of the history of the coin, before March 2020 came around and the trend flipped.
This turn to more outflows in the market is yet continuing, which means the market is still accumulating. This could be quite bullish for the price in the long term.
BTC Price
At the time of writing, Bitcoin’s price floats around $46.7k, down 2% in the last seven days. Over the past month, the crypto has gained 20% in value.
Now, here is a chart that shows the trend in the price of the coin over the last five days.
The price of BTC seems to have mostly moved sideways over the past few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.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.
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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
Bitcoin Outflows Spike As 30k BTC Exits Exchanges, Reserve Plunges Down
Bitcoin outflows have shown a spike amounting to 30k BTC today, leading to a plunge in the all exchanges reserve.
Bitcoin Netflow Shows Deep Negative Spike As 30k BTC Exits Exchanges
As pointed out by an analyst in a CryptoQuant post, the BTC exchange netflow showed a large negative spike earlier today.
The “outflow” is a measure of the total amount of Bitcoin exiting wallets of all exchanges. Similarly, the number of coins being deposited to exchanges is the “inflow.”
The difference between the inflow and the outflow is called the netflow. This indicator tells us the net amount of coins moving into or out of exchanges.
When the value of this indicator is negative, it means outflows are currently overwhelming the inflows and a net amount of Bitcoin is exiting exchanges. Such a trend, when prolonged, can be bullish for the price of the crypto as it may be a sign of accumulation.
Related Reading | USDC Inflow Spikes Up, Will It Act As Dry Powder For New Bitcoin Rally?
On the other hand, a positive netflow shows that a net amount of coins are entering exchange wallets at the moment. Since investors usually deposit to exchanges for selling purposes, this trend can be bearish for the coin.
Now, here is a chart that shows the trend in the Bitcoin netflow over the past couple of weeks:
Looks like the indicator showed a large downward spike recently | Source: CryptoQuant
As you can see in the above graph, the Bitcoin netflow had a huge negative spike earlier today. This amounted to an outflow of more than 30k BTC, or over $1.2 billion.
Such a large amount of coins exiting exchanges has made the exchange reserve (a metric that measures the total number of BTC present on exchanges) plunge down:
The indicator’s value seems to have plummeted today | Source: CryptoQuant
If this outflow belongs to one or more whale entities withdrawing their Bitcoin for hodling in cold wallets, then it can be quite bullish for the price of the crypto as it has significantly reduced its sell supply (that is, the reserve).
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However, as the quant notes, it’s yet unclear at the moment what this negative netflow may signify. It’s possible it could be just an internal transfer within the exchange wallets. And if so, it shouldn’t have any positive effect on the price.
BTC Price
At the time of writing, Bitcoin’s price floats around $40k, down 3% in the last seven days. Over the past month, the crypto has lost 6% in value.
The below chart shows the trend in the price of the coin over the last five days.
BTC’s price plunged down yesterday | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
Bitcoin Revisits $44k As Exchange Outflows See Uptick
Bitcoin has enjoyed some uptrend over the past day as the crypto once again visits the $44k price level. On-chain data suggests that an uptick in exchange outflows may be behind the move.
Bitcoin Exchange Outflows Observe A Spike In The Past Couple Of Days
As pointed out by an analyst in a CryptoQuant post, the BTC exchange outflows have showed raised values recently.
The “all exchanges outflow” is an indicator that measures the total amount of Bitcoin exiting wallets of all exchanges.
When the value of the metric goes up, it means more BTC is currently exiting exchanges. Such a trend has usually been bullish as holders usually withdraw their coins to personal wallets for hodling purposes. Prolonged large outflows can be a sign of whale accumulation.
On the other hand, when the indicator’s value stays low, it implies not many investors are moving their Bitcoin off exchanges at the moment.
This trend can be bearish if the opposite metric, the inflow, spikes up. This is because holders usually deposit to exchanges for withdrawing to fiat or for purchasing altcoins.
Related Reading | Bitcoin Death Cross 2022: What You Need To Know About The Deadly Signal
Now, here is a chart that shows the trend in the Bitcoin all exchanges outflow indicator over the past year:
The indicator’s value seems to have spiked up | Source: CryptoQuant
As you can see in the above graph, the value of the Bitcoin outflow has shown an uptick recently. This means that a large amount of withdrawals has taken place over the past couple of days.
Related Reading | SOPR Shows Bitcoin Holders Continue To Sell At A Loss, Similar To May-June 2021
According to the quant, this trend might show that the $40k price level is important to some investors. Whenever the crypto approaches a support level, outflow spikes like these usually occur as holders are keen to buy more as Bitcoin’s value dips to such levels.
BTC Price
At the time of writing, Bitcoin’s price floats around $43.8k, up 2% in the last seven days. Over the past month, the crypto has lost 12% in value.
The below chart shows the trend in the price of BTC over the last five days.
BTC’s price seems to have finally shown some upwards momentum | Source: BTCUSD on TradingView
After weeks of trending downtrend, Bitcoin finally seems to have shown some solid movement up as the crypto broke past the $44k mark several times in the past day.
The move may have been fueled by the recent uptick in the exchange outflows. It’s unclear at the moment if this is the rally that will help the crypto escape from the $40k to $45k range. Nonetheless, it’s some upwards momentum for the coin at last.
Featured image from Unspash.com, charts from TradingView.com, CryptoQuant.com
Bitcoin Breaks $51k Again As 20k BTC Flows Out Of Exchanges
As Bitcoin once again breaks past the $51k mark, on-chain data suggests more than 20k BTC exited exchanges before this price move.
Bitcoin Netflows Say Around 20k BTC Flowed Out Of All Exchanges Yesterday
As pointed out by a CryptoQuant post, netflows amounted to 20k BTC exiting exchanges yesterday, the largest spike since September.
The “all exchanges netflow” is an on-chain indicator that measures the net amount of Bitcoin going into or out of wallets of all exchanges. The metric’s value is calculated by simply taking the difference between the inflows and the outflows.
When the indicator assumes positive values, it means the inflows are currently overwhelming the outflows, and a net amount of coins is entering exchange wallets. Investors usually send their crypto to exchanges for withdrawing to fiat or for purchasing altcoins. So, if such netflows persist, the outcome could be bearish for the price of BTC.
On the other hand, negative netflows appear when more Bitcoin is entering exchanges than the amount going out. Prolonged downward spikes of the indicator can be bullish for the crypto as they may mean holders are in a state of accumulation.
Related Reading | Growth Of Bitcoin ETFs & Other Instruments Doesn’t Support Supply Shock Narrative
Now, here is a chart that shows the trend in the BTC netflows over the past year:
Looks like the indicator has showed negative values recently | Source: CryptoQuant
As you can see in the above graph, the Bitcoin netflow had a huge negative spike yesterday, measuring more than 20k BTC.
This value of the netflow has been the highest negative one since the month of September. Shortly following this spike, BTC’s price showed strong momentum up, and the coin broke past $51k once again,
Related Reading | Quant Explains How Large Bitcoin Leverage Ratio Can Help Turnaround Price
Interestingly, December has so far had the most amount of BTC moving out of exchanges compared to the rest of the year.
This trend may show that whales are currently accumulating as they are withdrawing big amounts of coins to personal wallets. This could be bullish for the price of Bitcoin in the long term.
BTC Price
At the time of writing, Bitcoin’s price floats around $51k, up 8% in the last seven days. Over the past month, the crypto has lost 11% in value.
Below is a chart that shows the trend in the price of BTC over the last five days.
BTC’s price has shown sharp movement up in the past couple of days | Source: BTCUSD on TradingView
Bitcoin seems to have finally broken out of the long phase of consolidation as the crypto has now surpassed the $51k price mark once again.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
