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Exchange Inflows Ramp Up As Crypto Investors Clamor To Exit Market

With the crypto market’s decline, there have been a number of things that have changed drastically in the space. Mostly, investors have been rushing to get out of the market before the crash takes more of their funds. What this has led to has been a significant increase in the number of cryptocurrencies that are flowing to exchanges. Most notably have been Bitcoin and Ethereum, whose daily exchange inflows have touched billions of dollars.

Billions In Crypto To Exchanges

The data for the last 24 hours shows that the amount of funds that are being transferred into centralized exchanges is up over the last week. Instead of the sub-$1 billion figures that have usually been recorded, the volume has ramped up significantly.

Glassnode reports that more than $3 billion in Bitcoin had moved into exchanges over the last 24 hours. In total, there was $3.2 billion worth of BTC recorded to have flowed into exchanges, with $3.3 billion flowing out, leading to a negative net flow of -$103.5 million. 

Related Reading | More Than 253,000 Traders Liquidated As Crypto Bloodbath Continues

The same was the case with Ethereum which had also seen $2.1 billion flowing in while $1.5 billion had flowed out. The positive net flow of $532.4 million for Ethereum is in line with the outflow trend that had been recorded for the digital asset over the last couple of months.

Interestingly, although high, the numbers for the last 24 hours are almost 50% below what was recorded on Sunday. This is understandable given that the majority of the market crash had happened in the late hours of Sunday, thus causing investors to want to move their funds.

Total market cap below $1 trillion | Source: Crypto Total Market Cap on TradingView.com

To put this in perspective, Sunday had seen $6.5 billion worth of bitcoin flow into centralized exchanges, while Ethereum’s numbers had clocked as high as $3.7 billion in the same time period.

🚨 Weekly On-Chain Exchange Flow 🚨#Bitcoin $BTC➡ $6.5B in⬅ $6.5B out📉 Net flow: -$9.9M#Ethereum $ETH➡ $3.7B in⬅ $3.5B out📈 Net flow: +$181.6M#Tether (ERC20) $USDT➡ $3.5B in⬅ $3.2B out📈 Net flow: +$339.4Mhttps://t.co/dk2HbGwhVw

— glassnode alerts (@glassnodealerts) June 13, 2022

Tether Outflows Says No Accumulation

Tether is the largest of the stablecoins and possesses the largest range of crypto trading pairs that are present in the market. Its inflow and outflow trend has often helped to know if crypto investors were looking to purchase coins or were in fact dumping their coins.

Related Reading | Bitcoin Drops To 18-Months Lows, Has The Market Seen The Worst Of It?

The Tether inflows and outflows for the last two days show that instead of trying to accumulate, investors are heading for the safety provided by these stablecoins. On Sunday, USDT inflows were slightly above outflows, which does not spell good news for the crypto market. This trend has now continued as the last 24 hours have now seen inflows matching outflows.

What this indicates is that investors are not buying up bitcoin or Ethereum. Rather, they are converting their cryptocurrencies into stablecoins to escape the extreme volatility of the current market. 

Featured image from Forbes India, chart from TradingView.com

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Bitcoin, Ethereum Exchange Inflows Suggest Sell-Offs Are Far From Over

Bitcoin and Ethereum have been at the forefront of market sell-offs that were triggered by the UST crash. Since then, sellers have continued to dominate the market and even with buyers making significant moves, it continues to be a seller’s market. The hope had been that a reversal in this trend would be witnessed with the start of the new week. However, inflow and outflow trends have indicated that sell-offs may continue for much longer.

Bitcoin, Ethereum Inflows Remain High

For Monday, there were some encouraging reversals in the price of major digital assets in the space. These included the reclaiming of $30,000 on the part of Bitcoin, while Ethereum had recovered once more above $2,000. However, this would prove to only make an already bad situation worse as sellers had ramped up inflows into exchanges to realize some gains.

Related Reading | MicroStrategy Will Not Dump Any Of Its Bitcoin, CFO Reveals

What this resulted in was more than $1.1 billion in BTC flowing into exchanges in a single day. This showed a reversal from the previous day of net flows that had seen outflows surpass inflows once more. Monday was much worse as centralized exchanges saw net inflows of $67 million in a single-day period.

The same was the case for the second-largest cryptocurrency by market cap, Ethereum, whose net flows were also positive, even surpassing that of Bitcoin. ETH had seen exchange inflows as high as $589.4 million in a 24-hour period while outflows had come out to $497.4 million. What this amounted to was a $92 million net flow. This indicates that there are even more sellers in ETH than there are in bitcoin. As such, the decline of the digital asset below $2,000 was expected.

BTC price declines below $30,000 | Source: BTCUSD on TradingView.com
Recovery In Sight?

The inflow and outflow trends have been alternating for a time now. This is evident in the past two days alone where net flows have been negative one day and then positive the next. Going off this trend, it is possible to deduce that there could very well be a reversal following Tuesday’s trading day.

Related Reading | Eight Consecutive Red Closes: Is Bitcoin Headed For A Recovery?

Alternatively, one thing that comes with a decline in prices has always been investors looking for the opportunity to take advantage of the lower prices. This always leads to an increase in outflows as more investors accumulate tokens.

Another indicator that would suggest a reversal is the USDT inflow and outflow trends. USDT net flows continue to be positive which is good for the market. It shows that investors are bringing more funds into centralized exchanges to be able to purchase and accumulate more tokens.

Featured image from CryptoSlate, 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 Exchange Inflows Hit Three-Month High As Market Braces For More Downside

Bitcoin exchange inflows have been on the rise recently. Although there was a period where it had tapered off, it had continued to rise once more. The culmination of this has been a massive inflow into various centralized exchanges, presumably for investors to sell off their coins. Now the inflows have hit a new three-month high, painting a rather grim picture for the future of the digital asset.

Inflows Take Over

Bitcoin investors have been dumping their holdings since the digital asset started its descent from its $69,000 all-time high. Although outflows had rivaled inflows, the rate at which BTC was flowing into exchanges remained a cause for alarm. 

In a chart posted by Glasnode Alerts, it shows how inflows have been moving in relation to price. Following the historical pattern of inflows increasing when the price is down, the market had seen more and more bitcoins moved onto exchanges for sale. 

Related Reading | APE Takes A Beating As It Sheds 50% Of Its Price

The exchange inflow volume on a 7-day moving average touched a three-month high of 1,729.605 BTC flowing into exchanges. This inflow had ramped up after bitcoin had lost its footing above $36,000, a critical support level.

📈 #Bitcoin $BTC Exchange Inflow Volume (7d MA) just reached a 3-month high of 1,755.021 BTC

Previous 3-month high of 1,729.605 BTC was observed on 08 May 2022

View metric:https://t.co/1S6EbDkdOO pic.twitter.com/8kSJPOLJXW

— glassnode alerts (@glassnodealerts) May 9, 2022

Whales Exiting Bitcoin

Usually, when exchange inflows get this high, it signals that whales are getting out of the digital asset. This is no surprise given the low sentiment that has plagued the market in recent times. Going by the charts, if this does descend into another full-blown bear market, then investors could be dealing with low prices for another year. 

Naturally, whales who have a large stake in the market are trying to exit in order to avoid more losses. This is backed by the bitcoin’s relative unrealized profit hitting a new 18-month low of 0.462. This means that investors are taking a profit. Coupled with the number of bitcoin addresses in profit reaching a new 18-month low, it is no surprise that more holders are cashing out their gains.

BTC price slips to $33,000 | Source: BTCUSD on TradingView.com

Interestingly though, small investors seem to be doubling down on their holdings. The number of addresses holding 0.01 BTC on their balances had touched a new all-time high on May 8th. This number now sits at 9,977,201 bitcoin addresses holding more than 0.01 BTC on their balances. 

Related Reading | Bitcoin Carnage Continues As BTC Disintegrates To $34K

Daily transactions have also held up in the space. Data shows that it continues to trend at a daily average with 233,892 transactions recorded on May 8th. This came out to a dollar figure of about $30 billion which has been the average since the beginning of the year.

Nevertheless, the declining price of bitcoin continues to strike fear in the hearts of investors. At the time of this writing, BTC is dangerously close to falling into the $32,000 territory with a trading price of $33,100.

Featured image from The Indian Express, chart from TradingView.com

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Ethereum Exchange Inflows Decline As Sellers Cool Off, Will Price Follow?

Ethereum exchange inflows had been on the high side for the better part of the past week. They averaged above $1 billion each day giving credence to the sell-off trend that has been experienced in the market. However, it seems there is a turn in the tide coming. As the weekend draws to a close, exchange inflows have been on the decline. This signals that the sellers are entering into a cool-off period that could potentially alter the price movement.

Inflows Fall Below $1 Billion

This week had opened up with alarming inflows into exchanges. Although the outflows had been enough to offset this, the rate at which investors were moving their Ethereum into exchanges was enough to be a cause of alarm. At its peak, Ethereum had seen $5.2 billion flowing into exchanges in a single day, rivaling even that of bitcoin. 

Related Reading | Experts Say Ethereum Will Grow 100% To Hit $5,783 By Year-End

This trend would continue for the next couple of days where inflows had been lower than this peak number but remained above the $1 billion mark. That is until the midweek trading market where exchange inflows had slowed significantly and finally dropped below $1 billion.

In the past 24 hours, the amount of ETH flowing into exchanges had dropped to $880 million. This signals that sellers are now taking a break from flowing the market with coins.

📊 Daily On-Chain Exchange Flow#Bitcoin $BTC➡ $1.5B in⬅ $1.6B out📉 Net flow: -$112.5M#Ethereum $ETH➡ $880.5M in⬅ $781.0M out📈 Net flow: +$99.5M#Tether (ERC20) $USDT➡ $663.4M in⬅ $641.6M out📈 Net flow: +$21.8Mhttps://t.co/dk2HbGwhVw

— glassnode alerts (@glassnodealerts) May 5, 2022

Nevertheless, the massive inflows had been offset by outflows. The accumulation frenzy among investors was enough to stall sellers who were trying to pull down the price, although not for the last 24 hours as outflows had been lower by inflows by $99.5 million.

Will Ethereum Price Follow?

Ahead of the opening of the trading day on Thursday, Ethereum’s price has not been doing well on the charts. It continues to suffer dips that have put it close to testing the $2,900 once more. It is following the general trend of the crypto market but the digital asset on its own is not doing too well according to indicators.

ETH price holding above $2,900 | Source: ETHUSD on TradingView.com

One of the scenarios where Ethereum continues to fall short is on the short-term trend. It is still trading below the 50-day moving average, an important point to hold if there is to be any bullish trend for the short term. The current price does not fall below this range by a large margin but is still enough to question if there is enough momentum for a recovery in the coming days.

Related Reading | Institutional Investors Exit Market As Crypto Declines, New Report Reveals

It is also important to note that the next significant support level for the digital asset lies at $2,824. This means that if bears are able to beat it down past $2,900 this morning, then further dips are expected before the cryptocurrency may be able to find adequate support. 

On the flip side of this, the first major resistance point now sits at $3,015. However, as it has proven in the last couple of days, reaching the $3,000 is a harder sell than falling to $2,800.

Featured image from Token Information, chart from TradingView.com

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Data: Bitcoin Top 10 Whale Inflows Form Historic Bear Signal

On-chain data shows the top 10 Bitcoin whale inflows are forming a historic bear signal right now, something that could spell trouble for the new rally.

Bitcoin Top 10 Exchange Inflows (Whales) Form A Peak Recently

As pointed out by an analyst in a CryptoQuant post, the BTC top ten exchange inflows have showed a bearish formation recently.

The “all exchanges inflow” is an indicator that measures the total amount of Bitcoin entering wallets of all exchanges during a specific period.

Investors usually deposit their BTC to exchanges for selling purposes. Therefore, any spikes in the metric can be bearish for the price of the crypto.

A modification of this indicator is the “top 10 exchange inflow,” which measures the sum of the ten largest transactions going to centralized exchanges.

As these transfers usually belong to whales, high values of the metric may be a sign of dumping from these massive Bitcoin holders.

On the other hand, low top ten inflow values may suggest that whales are selling a normal amount of coins at the moment.

Related Reading | Ethereum Will Continue To Outperform Bitcoin, Here’s The Indicator That Says So

Now, here is a chart that shows the trend in the Bitcoin top ten inflows over the past few years:

Looks like the value of the indicator is forming a peak | Source: CryptoQuant

In the above chart, the quant has marked the important regions of trend for the top ten Bitcoin exchange inflows during this period.

It seems like whenever the indicator has formed a peak, the price of Bitcoin has always taken a hit soon after the trend.

Related Reading | Malice Or Ignorance? The New York Times Keeps Printing Lies About Bitcoin Mining

Now, the top ten whale inflows seem to be forming a similar peak again. If the pattern holds true, then this could be a bearish signal for the price of the coin.

However, it’s also worth noting that the metric hasn’t yet formed a full turn yet, so it could still continue to go up or move sideways and the signal won’t go off.

BTC Price

Yesterday, Bitcoin’s price finally gained some strong momentum and broke past the $45k barrier. Now, the price is above $47k, a level that the coin hasn’t visited since the very start of the year.

At the time of writing, the coin is trading around $47.2k, up 15% in the last seven days. Over the past month, the crypto has gained 25% in value.

The below chart shows the trend in the price of BTC over the last five days.

The price of BTC seems to have shown some sharp uptrend over the past day | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

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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.

Related Reading | TA: Bitcoin Corrects Lower, Why BTC Remains In Uptrend

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

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USDC Inflow Spikes Up, Will It Act As Dry Powder For New Bitcoin Rally?

On-chain data shows the USDC exchange inflow has spiked up. Historically, stablecoins have provided dry powder for kicking off new Bitcoin rallies.

USDC Exchange Inflow Sharply Rose To High Values Recently

As explained by an analyst in a CryptoQuant post, almost one billion USDC has flowed into exchanges recently. Past pattern suggests this may lead to uptrend for Bitcoin.

The “USD Coin exchange inflow” is an indicator that measures the total amount of the stablecoin entering wallets of all exchanges within a given period.

When the value of this indicator moves up, it means investors are depositing a higher amount of coins at the moment. Usually, holders transfer stablecoins to exchanges for converting them into a volatile crypto, like Bitcoin. They may also withdraw the coins to fiat.

Investors use stablecoins like USDC when they want to exit volatile markets and hold on until prices are favorable enough for re-entering them. This implies that high stablecoin exchange inflows may show that prices are once again good for re-entry.

Related Reading | Bitcoin Trading Volume Has Now Stabilized At High Values, But For How Long?

Now, here is a chart that shows the trend in the USD Coin exchange inflows over the past year:

Looks like the value of the metric has surged up to high values recently | Source: CryptoQuant

As you can see in the above graph, the USDC inflow has spiked up over the past few weeks. These inflows have amounted to around 1 billion coins.

There were two other instances earlier during the period where similar values were also observed. Looking at the Bitcoin price curve in the same chart, it seems like some time following such large spikes in the indicator, the value of the crypto has always surged up as well.

Related Reading | Bitcoin Exchange Reserve Has Now Reached An Equilibrium After 2 Years Of Downtrend

This makes sense as many investors deposit the USDC for converting to BTC, so such inflows provide for a fresh supply of dry powder for sustaining a rally.

Now it remains to be seen whether a similar effect on the price of Bitcoin will also be there this time, or if this USDC inflow will pump some other coins instead.

Bitcoin Price

At the time of writing, Bitcoin’s price floats around $39.2k, down 10% in the last seven days. Over the past month, the crypto has lost 11% in value.

The below chart shows the trend in the price of the coin over the last five days.

BTC’s price seems to have dropped down once again today | Source: BTCUSD on TradingView

Yesterday, Bitcoin showed some sharp uptrend and broke above the $42k level again. However, today the coin looks to have plunged down once more.

Featured image from Unsplash.com, charts from TradingView.com, CryptoQaunt.com

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74% Of Bitcoin Holders Remain In Profit At Current Prices

Bitcoin price has dropped quite a bit from its $69,000 all-time high but it continues to maintain high values. Investors who have been in the market for a while are deep in profit, while a small minority are the only ones in loss. Nevertheless, it goes to show how much the digital asset has grown in value given that the large majority of investors could sell now and still make a profit.

74% Of Bitcoin Holders Remain In Profit

Data from IntoTheBlock shows that a total of 74% of all bitcoin holders continue to remain in profit. These investors would make a profit and some already have been realizing this profit with the sell-offs that have been taking place in the market. So despite declining prices for the past month, the majority of bitcoin investors are realizing gains from their investments.

Related Reading | Despite Crackdown, Bitcoin Mining Is Still Alive And Well In China

On the flip side of this, a total of 18% of investors are in loss from their investments. Going with current prices, these investors would have purchased their bitcoins at about $52,000 and higher, putting them right in loss territory. The rest of the investors, 7% in total, remain in neutral territory. These are the investors who bought their bitcoins on or around the current trending price of the digital asset.

74% of BTC investors are in profit | Source: IntoTheBlock

Of all of thee investors, 56% have held their bitcoins for longer than a year, putting the majority of those who have held their bitcoins for longer right in profit territory. A total of 33% have held their assets for a duration of 1 to 12 months, while 11% have held their coins for less than a year.

It’s safe to say that most of those in loss are those in this last category as they would have bought their bitcoins at the height of the bull rally that sent the digital asset to new all-time highs.

Exchange Outflows Signaling Supply Squeeze

Even as the majority of bitcoin holders are in profit, exchange inflows continue to underperform outflows. On a seven-day moving average scale, total outflows from exchanges have been higher than inflows by almost $1 billion.

Related Reading | December Turns Red For Bitcoin As Market-Wide Sell-Offs Continue

The total bitcoin exchange inflows for the last seven days came out to $7.54 billion, while outflows for the same time period were higher at $8.27 billion. This signals an impending supply squeeze as the coins moving out of exchanges are higher than those coming in.

Additionally, this points to bullish sentiment among investors. With more coins moving out of exchanges, investors are most likely consolidating their holdings and moving them to safer self-storage options to hold out for the long-term.

BTC breaks above $50,000 | Source: BTCUSD on TradingView.com
Featured image from Bitcoin Profit, charts from IntoTheBlock and TradingView.com