Exchange Inflows Rising As Crypto Investors Cry To Exit The Market
With the decline of the crypto market, a number of things have changed drastically in the space. Most of the time, investors have rushed to get out of the market before the crash swallows more of their money. This has led to a significant increase in the number of cryptocurrencies flowing to exchanges. The most notable were Bitcoin and Ethereum, whose daily inflows into the exchange have reached billions of dollars.
Billions in crypto to exchanges
The data from the last 24 hours shows that the amount transferred to centralized exchanges has increased over the past week. Instead of the less than $1 billion figures usually recorded, the volume has increased significantly.
glass node reports that more than $3 billion worth of Bitcoin had been moved to exchanges in the past 24 hours. In total, $3.2 billion of BTC was registered and flowed to exchanges, while $3.3 billion was outflowed, resulting in a negative net flow of -$103.5 million.
Related literature | Over 253,000 Traders Liquidated as Crypto Bloodbath Continues
The same was the case with Ethereum, which also had $2.1 billion coming in and $1.5 billion coming out. The positive net flow of $532.4 million for Ethereum is in line with the outflow trend seen for the digital asset in recent months.
Interestingly, while high, the numbers for the past 24 hours are nearly 50% lower than what was recorded on Sunday. This is understandable, as most of the market crash had occurred in the late hours of Sunday, prompting investors to move their money.
Total Market Capitalization Under $1 Trillion | Source: Crypto Total Market Capitalization on TradingView.com
To put this into perspective, $6.5 billion in bitcoin had been flowing into centralized exchanges on Sunday, while Ethereum’s numbers clocked in at $3.7 billion over the same period.
🚨 Weekly on-chain exchange flow 🚨#Bitcoin $BTC
➡️ $6.5B in
⬅️ $6.5B off
📉 Net Power: -$9.9 Million#Ethereum $ETH
➡️ $3.7B in
⬅️ $3.5 Billion Off
📈 Net Power: +$181.6M#Tether (ERC20) $USDT
➡️ $3.5 Billion in
⬅️ $3.2 Billion Off
📈 Net Power: +$339.4 Millionhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) June 13, 2022
Tether outflow says no accumulation
Tether is the largest of the stablecoins and features the widest range of crypto trading pairs on the market. The inflow and outflow trend has often helped to know whether crypto investors wanted to buy coins or basically dumped their coins.
Related literature | Bitcoin plunges to 18-month lows, has the market seen the worst?
The Tether influx and outflow over the past two days shows that instead of trying to accumulate, investors are heading for the safety these stablecoins provide. On Sunday, USDT inflows were slightly higher than outflows, which is not good news for the crypto market. This trend has now continued as the inflows in the past 24 hours now match the outflows.
What this indicates is that investors are not buying bitcoin or Ethereum. Instead, they are converting their cryptocurrencies into stablecoins to escape the extreme volatility of the current market.
Featured image from Forbes India, chart from TradingView.com
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