With the crypto market’s decline, there have been a number of things that have changed drastically in the space. Investors have been racing to exit the market, in order not to lose more funds. The result has been an increase in cryptocurrency transactions to exchanges. The most prominent cryptocurrencies are Bitcoin and Ethereum. Their daily inflows to exchanges exceed billions of dollars.
Bitcoin To Exchanges: Billions
According to data from the last 24hrs, the volume of money being transferred to central exchanges has increased over the previous week. The volume is much higher than the usual sub-$1billion figures.
Glassnode reportsOver $3 billion worth of Bitcoin was transferred into the exchanges in just 24 hours. BTC worth $3.2 billion was reported to have flowed to exchanges. Meanwhile, $3.3 billion flowed out. The net result is a negative net flow (-$103.5 millions).
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This was also true for Ethereum, which saw $2.1 billion flow in and $1.5 billion out. This positive net flow for Ethereum of $532.4million is consistent with the trend of outflows recorded over the past few months.
The numbers recorded for the 24 hour period are nearly half of what they were on Sunday. It is easy to understand why, given the fact that most of the market crashes occurred on Sunday night and investors wanted to relocate their funds.
Source: Crypto Total Market Cap on TradingView.com| 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🚨#Bitcoin $BTC
➡️Invoices of $6.5B
⬅️$6.5B Out
📉 Net flow: -$9.9M#Ethereum $ETH
➡️Invoice: $3.7B
⬅️Outgoings: $3.5B
📈 Net flow: +$181.6M#Tether (ERC20) $USDT
➡️Invoices up to $3.5B
⬅️Outgoings: $3.2B
📈 Net flow: +$339.4Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) June 13, 2022
Tether Outflows Claims No Accumulation
The largest stablecoin, Tether, has the most number of available crypto trading pairs. Tether’s outflow and inflow trends have often been used to determine whether crypto investors are looking for coins to trade or to dump their coins.
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Tether’s inflows, outflows during the last 2 days are a sign that rather than trying to accumulate funds, investors seek the protection provided by these stablecoins. This is bad news for crypto markets. On Sunday USDT inflows were slightly lower than the outflows. Inflows are now matching outflows as this trend continues.
This indicates that the investors aren’t buying bitcoin and Ethereum. To escape extreme volatility, these investors convert their cryptocurrency into stablecoins.
Image from Forbes India. Chart from TradingView.com
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