Recently, Bitcoin exchange outflows are improving. What had predicated this was a long week of inflows surpassing outflows, solidifying the fact that it was a seller’s market. The Monday numbers have shown that the tide is turning. Bitcoin exchange outflows now surpass inflows by a wide margin.
Investors Are Accumulating
Glassnode published data on exchange outflows and inflows, which suggests an accumulation trend for investors. At the beginning of the week, inflows into central exchanges reached $1.1 million, which is quite high. However, outflows were even greater. Bitcoin investors moved $1.4 Billion out of central exchanges over the past day. The net result has been a negative flow of $325.3 million.
Negative Sentiment Deepens In Crypto, Why Recovery May Not Last| Negative Sentiment Deepens In Crypto, Why Recovery May Not Last
Similar trends were observed for Ethereum, which is the second most popular cryptocurrency. However, its net flow also fell to the negative. There was $476million worth of ETH being moved into exchanges. However, 487 million ETH were removed from exchanges. This brought the net negative flow down to -$11million.
The trend is also consistent with the Tether UST net flow trends. This indicates that outflows are outpacing inflows by $126 million. It means that investors have chosen to invest more in cryptocurrencies like bitcoin and Ethereum, and less in stablecoins as USDT.
?Daily Exchange Flow on the On-Chain#Bitcoin $BTC
➡️Invoice: $1.1B
⬅️Outgoings: $1.4B
? Net flow: -$325.3M#Ethereum $ETH
➡️$476.0M
⬅️$487.7M Out
? Net flow: -$11.0M#Tether (ERC20) $USDT
➡️510.1M
⬅️383.7M Out
? Net flow: +$126.4Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) May 31, 2022
Bitcoin Whales Are Not Forgotten
Bitcoin whales often accumulate when bitcoin prices drop. This is a chance for most to acquire as many bitcoins as possible at a reduced price. It also allows them to grow their holdings.
One of the biggest accumulation trends has occurred this time, with addresses holding over 10K BTC. This reached an all-time record and now there are 97 BTC addresses holding more than 10,000 BTC in themThis marks a 15-month record.
BTC's price drops to $31,500 | Source: BTCUSD on TradingView.com
There are many ways to get involved. addresses holding more than 0.1 BTC has also reached a new all-time high. It has now reached 3,525.636, indicating that whales are not just accumulating but also smaller bitcoin addresses are joining the fray.
Similar Reading: Billionaire Tim Draper on What Will Set Off The Next Bitcoin Bull Market| Billionaire Tim Draper On What Will Trigger The Next Bitcoin Bull Market
Active supply has also declined significantlyIt is currently at its six-month lowest. Over 1.19 Million BTC have been inactive for the last three months. At the start of December 2021, there was an earlier low of 1.2 million BTC.
At the time this article was written, Bitcoin trades at $31,700. As the recovery trend continues, Bitcoin is now trading at $31,700.
Featured image taken from TradingView.com, chart by VOI
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
