Exchanges inflow rock Bitcoin, Ethereum as market struggles to recover

Prices of digital assets such as bitcoin and ethereum have been challenged as markets turmoiled, sending shivers to investors. The downtrend sparked a massive sell-off that sent prices to yearly lows. Although the volume has been sold off, the sellers don’t seem to be done. This is evidenced by the recent numbers of Bitcoin and Ethereum entering centralized exchanges.

Bitcoin, Ethereum hit by capital inflows

this Inflows have been steadily increasing recently This increase is worrying given the volume of transactions entering the exchange. Top coins Bitcoin and Ethereum are usually the best performers in such markets, and while they have held up, investors don’t seem convinced they will continue to do so. This is also one of the reasons for the large inflow of funds.

Data shows that in the past 24 hours alone, more than $1.4 billion in Bitcoin has flowed into centralized exchanges. While this was down from the previous day when $1.7 billion in BTC was transferred to exchanges, it significantly outpaced the outflow rate compared to the previous day.

Related reading | How Tether Peg predicts wild swings in Bitcoin

Bitcoin outflows over the past 24 hours were $1.2 billion. This resulted in a positive net flow of $233 million.

Ethereum has not been left out either. If anything, the second-largest cryptocurrency by market cap has been hit harder by exchange inflows. The day before, it had seen $569 million in inflows. But unlike Bitcoin, it did not record enough capital outflows to offset that number.

BTC continues downtrend | Source: BTCUSD on TradingView.com

This will continue into the market on Wednesday, with $658.2 million flowing into centralized exchanges. During the same period, $651.1 million flowed out of the exchange, leaving a positive network of $7.2 million.

USDT outflow to sell

One way to indicate whether investors are selling or buying bitcoin, ethereum, and other digital assets is through stablecoin inflows, and the pace of that flow recently has been nothing short of encouraging.see tuesday $1.1 billion in USDT flows into exchanges, which is a significant number, but the outflow is higher. In total, $1.7 billion in USDT left the exchange, resulting in a net flow of negative $612.1 million.

Related reading | Funding rate falls to yearly low after Bitcoin falls below $29,000

Indicators like these suggest that investors are likely to convert their volatile cryptocurrencies into these stablecoins and move them out of exchanges for safekeeping. Mainly to avoid highly volatile markets.

Still, USDT volumes over the past 24 hours are starting to paint a slightly better picture. While outflows topped $738.5 million over the past day, inflows were $871.4 million and net inflows were $132.9 million. If this trend continues, it is likely that the current trend of sales will shift to that of buyers, which is expected to spark a recovery in the market.

Featured image from News Central TV, chart from TradingView.com

follow Best Owie on Twitter Get market insights, updates and the occasional interesting tweet…



Source link