In the most recent decline in prices, Bitcoin and Ethereum led the market. This has resulted in a large amount of profit taking by investors who want to prevent further losses over the long-term. However, the investors are not discouraged and continue to collect coins. This has led to both intense outflows of Bitcoin and Ethereum, which have resulted in a negative net flow both for digital assets.
Bitcoin Investors Are Not Going Down
Bitcoin fell below $40,000 in the first week of this week, bringing with it an avalanche of liquidations. These low prices have caused sentiment to turn mostly negative, but it’s been an excellent time for people who accumulate bitcoin, and exchange outflows confirm this.
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Over the last day, outflows from exchanges has exceeded inflows by over $200 million. This amounts to $1.1 Billion in bitcoin that has been moved from centralized exchanges, while the inflows are still at $886.4 Million.
This trend also held true for Ethereum, the second largest cryptocurrency market capital. By more than $70million, outflows also outperformed inflows. Total inflows were worth $658.2 millions, while outflows reached as high as $729.2million.
📊Daily on-Chain Exchange Flow#Bitcoin $BTC
➡️In: $886.4M
⬅️Outgoings: $1.1B
📉 Net flow: -$236.2M#Ethereum $ETH
➡️$658.2M
⬅️$729.2M
📉 Net flow: -$70.9M#Tether (ERC20) $USDT
➡️In: $816.5M
⬅️$648.4M Out
📈 Net flow: +$168.0Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) April 13, 2022
Tether: More Accumulation
Tether flows into exchanges at a higher rate than it does out, which supports the investor trend of accumulation. Most investors move Tether into exchanges to buy cryptocurrencies. A large amount of this Tether ends up being used to support Bitcoin and Ethereum.
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Over the last day, $816.5 million was moved into central exchanges and $648.4million were removed. Tether was able to move into exchanges with a positive netflow of $168 Million.
This follows the trend of the previous day, which saw bitcoin experience a negative netflow of -$45.4million for bitcoin and Ethereum at -$74.4million. Tether also had a positive netflow of $132.3million, which indicates that investors are taking advantage of the downtrend.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Featured Image from US News Money. Chart from TradingView.com