Digital assets such as Bitcoin or Ethereum have seen their values challenged by the turmoil in the market. This has caused investors to shiver. This downtrend led to massive selling that sent prices toward their yearly lowests. Even though volume is being reduced, sellers are not yet done. It is evident by the recent surge in Bitcoin and Ethereum transactions to central exchanges.
Bitcoin and Ethereum rocked by inflows
It inflows had been growing steadily recentlyThis is worrying considering the amount of money that has been flowing into exchanges. The top coins Bitcoin and Ethereum tend to hold strong in markets such as these. Investors aren’t convinced that this will continue. The inflows have been huge because of this.
In the past 24 hours, more than $1.4 Billion worth of Bitcoins have been transferred into central exchanges. This is an increase from $1.7 billion worth of Bitcoin that was moved into exchanges the day before, but it’s still significantly higher than the outflow rate.
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Inflows to bitcoin in the past 24 hour were $1.2 Billion. This resulted in a net positive flow of $233 millions.
This was also true for Ethereum. Exchange inflows are worsening the situation for Ethereum, which is second by market capital. The previous day’s inflows were $569 millions. It did not have enough outflows, however, unlike Bitcoin.
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The Wednesday market saw $658.2million flowing into central exchanges. Over the same period, $651.1 million was also flowing into the exchanges. This left an positive network of $7.2million.
UST Exit Signs Off on Selling
The stablecoin flow rate is a way to determine if an investor is buying or selling Bitcoin, Ethereum and other digital assets. However, it has not been encouraging lately. Tuesday was Tuesday. $1.1 billion USDT flowing into exchangesWhile this is an important figure, the outflows were much higher. There was $1.7 Billion in USDT left exchanges. This resulted to a net negative flow of $612.1 Million.
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This shows that crypto-currencies are being converted by investors into stablecoins, and then moved out of exchanges to be safe. They are used mainly to protect themselves from volatile markets.
The USDT volume for the 24 hour period is beginning to show an improvement. Outflows reached $738.5million for the last day. However, $871.4million was inflows, which is a net positive flow of $132.9million. If this trend continues, then the current selling trend could well be turned around into a buyer’s that would hopefully trigger a recovery in the market.
📊Daily Exchange Flow on the On-Chain#Bitcoin $BTC
➡️Invoice: $1.4B
⬅️Outgoings: $1.2B
📈 Net flow: +$223.0M#Ethereum $ETH
➡️$658.2M
⬅️$651,1M
📈 Net flow: +$7.2M#Tether (ERC20) $USDT
➡️In: $871.4M
⬅️$738.5M
📈 Net flow: +$132.9Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) May 19, 2022
Featured image taken from News Central TV. Chart by TradingView.com
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