The Bitcoin daily exchange net flow has been inconsistent for the past month. This can be attributed to the many swings between stacking and dumping that have been occurring in the market. All of these factors have had an impact on the cryptocurrency’s price. But net flows seem to be finding a balance. Unfortunately, it is not one that is positive.
The Outflows Take Over
While the outflows and inflows over the last 24 hours have been minimally alarming, it is indicative of the massive sell-offs in the region. Glassnode data shows that BTC moved more into centralized exchanges than it was out. The total outflow of BTC was $729.5 million, and $729.7 million in inflows. There was a net positive flow in the amount of $37.2million.
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Given that digital assets are becoming more popular, it is no surprise that many investors want to sell them. The accumulation trend seen across large investors is not sufficient to alter the volume of BTC that is being transferred to central exchanges for sale.
📊Daily on-Chain Exchange Flow#Bitcoin $BTC
➡️$766.9M
⬅️$729.7M
📈 Net flow: +$37.2M#Ethereum $ETH
➡️In: $316.1M
⬅️$281.1M
📈 Net flow: +$35.1M#Tether (ERC20) $USDT
➡️In: $364.9M
⬅️$43.5M out
📉 Net flow: -$38.6Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) July 12, 2022
The price of bitcoin has been negatively affected by this as the value of the digital asset fell below $20,000 again. Investors have shifted to stablecoins in order to be safe. This is evident by the fact that USDT has been leaving more exchanges than it has being received. This means that they don’t buy cryptocurrencies such as bitcoin.
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Bitcoin Investors Are Trying To Catch up
Although bitcoin’s price is declining, investors are still interested, particularly smaller ones. This is evident in the increase in addresses that hold at least 0.1 BTC. The number of addresses holding at least 0.1 BTC has increased since the crash. new all-time high of 3,706,019 addressesWith more than 0.01 BTC in their account.
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This hasn’t affected the price in any way, as the smaller investors don’t have much control over the market. It speaks volumes about the way investors view current market conditions, which for many is an opportunity to purchase coins at a discounted price.
However, bearish momentum is still evident in the digital asset. As the price falls, more addresses are being activated. Bitcoin’s trend is at $19,670 as of writing. This price has dropped below its $400 billion market value.
Featured image taken from Analytics insight and charts from TradingView.com
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