Posted on

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

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Posted on

Market Downtrend Trigger Bitcoin Inflows From Institutional Investors

The market continues to be in disarray as the price of bitcoin has now fallen to the low $30,000s. This had been preceded by declining faith in the market thus translating to fewer inflows/more outflows in the last couple of weeks. However, with the price now at the lowest, it has been this year, institutional sentiment towards the digital asset has changed and this has resulted in significant inflows into the digital asset for the first time in weeks.

$45 Million Flows Into Bitcoin

Bitcoin has now seen inflows following several weeks of outflows. The past week has proven to be good for the pioneer cryptocurrency which saw inflows as high as $45 million. It is a complete turnaround from the institutional investor side which has been pulling money out of the digital asset to presumably put towards their altcoin portfolios.

Related Reading | Bitcoin Exchange Inflows Hit Three-Month High As Market Braces For More Downside

Naturally, these institutional investors had been pulling out when indicators had been pointing towards a bear market, and have now returned to take their share of the pie with bitcoin trading at low prices. It marks the return of positive sentiment among these investors.

Short Bitcoin also followed this same trend and has ridden the wave into its second-largest weekly inflows on record. The past week saw $4 million total flow into Short Bitcoin which has now brought its total asset under management (AuM) to a new high of $45 million.

BTC struggles to find support above $31,000 | Source: BTCUSD on TradingView.com

Other digital asset investment products were not left out of the inflow galore. This time around, there was a total of $40 million flowing into digital asset investment products in a surprising turnaround. 

Altcoins were not left out of this though even though outflows were more dominant for last week. However, Solana would break away from the mold in this regard to be the only altcoin that recorded any significant inflows with $1.9 million flowing into the Digital asset. 

As for other altcoins, the outflows continue as negative sentiment continues to rock the cryptocurrency. It saw $12.5 million leave the digital asset in the one-week period. So far, 0.8% of the total Ethereum AuM has left the digital asset as its year-to-date outflows have now reached $207 million.

Related Reading | Bitcoin Price Crashes Below $30K As Markets Show Signs Of Paranoia

The inflows and outflows remained inconsistent across various market regions. The CoinShares reports show that investment products in the North American markets had recorded $66 million. Across the pond in Europe, outflows dominated with a total of $26 million leaving digital asset investment products in the region.

Nonetheless, the new trend of inflows coming into assets like Bitcoin and Solana prove that institutional investments had come out of the woodwork to take advantage of the price weakness that had been displayed in the market. This price weakness continues with bitcoin still struggling to establish a support level above the $31,000 price range. 

Featured image from Investopedia, chart from TradingView.com

Posted on

Bitcoin ETPs Outflows Suggests Institutional Investors Are Getting Cold Feet

Bitcoin ETPs have been experiencing some immense outflows. These have not come as a surprise though given that the price of the digital asset had crumbled last week. It has followed the price of bitcoin falling below $40,000 once again, leading to bearish sentiment among investors. This in turn has put immense selling pressures on other investors who have gained exposure to the market using trading investment vehicles such as ETPs.

Outflows Rock Bitcoin ETPs

Before this month, Bitcoin ETPs had enjoyed a prosperous month of inflows as faith was renewed in the digital asset following its campaign above $40,000. It was the strongest month in the history of these ETPs since October last year with more than 10,000 BTC in inflow recorded. 

However, the month of April would prove to be the complete opposite as outflows so far for the month have been almost as high as inflows for the month of March and the month is not even over yet. This constitutes one of the largest outflows recorded for any month since the inception of Bitcoin ETPs. The last being in July 2021 when outflows had touched 13,849 BTC,

Related Reading | How Bitcoin Futures Premiums Exhibit Signs Of Market Exhaustion

April has been following this trend hard with more than 9,871 BTC and counting so far. Although a reversal of this trend could very well take place in the remaining days of the month. This is the second-largest outflow ever recorded and the direct effect of this has been the increased sell pressure on investors.

ETPs outlfows second-largest in history | Source: Arcane Research

Nevertheless, this is not as bad of a bearish signal as some might be led to believe. A look at the July 2021 outflows shows that it coincided with the peak of the summer sell-offs, which was promptly followed by a recovery in the price of the digital asset. 

If this is the case, then this might mark the sell-offs that have been rocking the market in recent times. A bounce back from a point like this would likely put bitcoin on a path towards $55,000.

BTC On The Charts

For the better part of last week, the price of bitcoin had nested in the $40,000 support. It had eventually lost hold of this point and slid down to the $39,000 level. This would prove to be short-lived, however, as the midweek trading activities had brought the digital asset back up to $42,000.

BTC starts another recovery trend | Source: BTCUSD on TradingView.com

Even though the asset is doing well at this point, it is a long way from $45,000 where bears are mounting some of the strongest resistance ever seen in the market. This key resistance level had been the undoing of bitcoin in the past week.

Related Reading | Halfway To The Halving: What This Means For Bitcoin

The cryptocurrency has now moved to trade above the 50-day moving average, marking a bullish trend for the short term. A translation to a bullish trend for the long-term would see the digital asset bear the key resistance area of $45,000 and traveling all the way to $48,000. Below this point, BTC continues to stand on shaky ground.

Featured image from Medium, charts from Arcane Research and TradingView.com

Posted on

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.

Related Reading | Bitcoin Funding Rates Remain Negative For More Than A Week

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.

Related Reading | The Uber Rich Investors Are Picking This Altcoin Over Bitcoin

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