The outflows of Ethereum and Bitcoin from centralized exchanges has been indicative of a growing accumulation trend. As investors moved the coins out, billions were lost each week from exchanges. Investors aren’t slowing down buying, even though the prices of Ethereum and bitcoin have recovered.
Bitcoin, Ethereum Net flows Still Negative
Both Bitcoin and Ethereum have seen negative exchange net flows in the past week. Negative net flows have been observed on a daily and weekly basis as outflows continue exceeding inflows.
Glassnode data shows that bitcoin net flows reached $158.5 million for the day. BTC was worth $498million, with more than $656million going out.
The net flow trend for Ethereum was similar. $170.7 Million went into the exchanges, and $212.7M left them. Over the 24 hour period, this resulted in a net loss of $42 million. According to data by IntoTheBlock on a seven-day basis, ETH net flow had remained at a negative level, although only marginally.
📊Daily Exchange Flow on the On-Chain#Bitcoin $BTC
➡️In: $498.0M
⬅️$5656.5M
📉 Net flow: -$158.5M#Ethereum $ETH
➡️$170.7M
⬅️$212.7M Out
📉 Net flow: -$42.0M#Tether (ERC20) $USDT
➡️$361.4M
⬅️$283.8M Out
📈 Net flow: +$77.6Mhttps://t.co/dk2HbGwPL4— glassnode alerts (@glassnodealerts) October 18, 2022
Is There a Recovery on the Horizon?
Although the crypto market has been steadily consolidating for some time, indicators indicate that this may be changing. Inflows of Tether USDT into centralized also suggest this. The stablecoin’s net flows remain positive which indicates a stop to market sell-offs as well as a start of a Buy Trend. The net flows in the last 24 hours were approximately $77 million. It’s difficult to determine when the market will see a major recovery.
BTC prices settle above $19 500 | Source: BTCUSD on TradingView.com
Both Bitcoin and Ethereum moved into the red over the past 24 hours but have only seen small gains. BTC has risen 0.40% within the last 24 hour, and ETH has risen 0.47% over that same time frame at the time this article was written.
Bitcoin has a resistance level of $20,000 that makes it difficult to overcome. 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 taken from Finbold. Chart by TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…