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Since bitcoin fell below $20,000, investors across all spheres have been taking this as an opportunity to fill up their bags. This accumulation trend was not readily apparent at first given the high volatility that was triggered by the FOMC meeting. However, now that the market has settled into somewhat of a normal range, the accumulation trend looks to be in full swing.
Exchange Outflows Grow
Over the past week, the bitcoin exchange outflows have been ramping up. They had continued to surpass daily inflows, leading to negative net flows across centralized exchanges. Primarily, this accumulation trend had been led by whales, wherein a single instance, a bitcoin whale had added about 5,000 BTC to their holdings in a matter of weeks.
The combined figures for inflows and outflows in centralized exchanges also speak to this. For the last seven days, there was a total of $3.4 billion in BTC that flowed into exchanges where the outflows came out to $4.9 billion. This means that a net negative flow of $1.4 billion for the week.
🚨 Weekly On-Chain Exchange Flow 🚨#Bitcoin $BTC
➡️ $3.4B in
⬅️ $4.9B out
📉 Net flow: -$1.4B#Ethereum $ETH
➡️ $1.4B in
⬅️ $1.5B out
📉 Net flow: -$90.0M#Tether (ERC20) $USDT
➡️ $2.0B in
⬅️ $2.1B out
📉 Net flow: -$71.2Mhttps://t.co/dk2HbGwPL4
— glassnode alerts (@glassnodealerts) October 10, 2022
The Tether (USDT) net flows for this week also point toward this same accumulation trend. With $2 billion in USDT flowing into exchanges for the 7-day period, it shows that investors are no longer seeking safety in stablecoins and are instead putting more skin in the game with bitcoin.
Large transactions were also rampant during this time with $160.2 billion in large transactions recorded for the 7-day period. Exchange deposits have also touched a two-year low as well.
BTC settles below $20,000 | Source: BTCUSD on TradingView.com
Bitcoin Might Still Be Bearish
Despite the accumulation trend that has been forming in bitcoin over the last week, it still seems that investors are not completely convinced about a bullish future for the digital asset, especially in the short term. This is why the amount of active bitcoin supply had continued to climb in the last week.
This metric can often point to if investors are looking to hold their coins or follow the sell trend. When the active supply is low, investors are not selling their coins. When it starts to climb, it shows that sell-offs are in full bloom.
Given that this has hit a new all-time high of 65.977%, it is hard to tell if the accumulation trend would be enough to help prop up the price of bitcoin. However, peaks like these have historically preceded a rise in price for BTC, sparking some hope for the digital asset.
Featured image from Forbes, chart from TradingView.com
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