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Bitcoin and Ethereum outflows from centralized exchanges indicate a growing accumulation trend among investors. This caused billions of dollars in coins to leave the exchanges every week as investors put them out. Even now, the outflow from the exchange has continued despite the recovery in the price of bitcoin and Ethereum, showing that investors are not slowing down their purchases.
Bitcoin, Ethereum Net Flows Still Negative
Net exchange flows over the past two weeks have come in negative for both Bitcoin and Ethereum. The same has been the case on a daily basis, where outflows continue to outpace inflows, leading to negative net flows.
Data from Glassnode shows net flows for bitcoin as high as $158.5 million for the final day. A total of $498 million of BTC had flown to exchanges, but more than $656 million had flowed out.
Ethereum saw a similar net flow trend with $170.7 million flowing into the exchanges and $212.7 million flowing out of the exchanges. This resulted in negative net flow of -$42 million over a 24-hour period. On a 7-day rolling basis, net ETH flows had remained negative, but only by a small margin, according to data from IntoTheBlock.
📊 Daily on-chain exchange flow#Bitcoin $BTC
➡️ $498.0 million in
⬅️ $656.5M off
📉 Net Power: -$158.5M#Ethereum $ETH
➡️ $170.7 million in
⬅️ $212.7 million off
📉 Net Power: – $42.0 Million#Tether (ERC20) $USDT
➡️ $361.4 million in
⬅️ $283.8 million off
📈 Net Power: +$77.6 Millionhttps://t.co/dk2HbGwPL4
— glassnode alerts (@glassnodealerts) October 18, 2022
A recovery on the horizon?
The crypto market has been consolidating for a while, but indicators point to a possible end to this trend. The influx from Tether (USDT) to centralized also points to this. Net flows for the stablecoin remain positive, suggesting an end to the sell-off and the beginning of a buying trend in the market. However, it remains difficult to pinpoint exactly when a significant recovery will occur, as net flows for the last day were approximately $77 million.
BTC price settles above $19,500 | Source: BTCUSD on TradingView.com
In the past 24 hours, both Bitcoin and Ethereum have moved back into the green, but only minor recoveries have been recorded. BTC is up 0.40% in the last 24 hours and ETH is up 0.47% at the time of writing over the same period.
For Bitcoin, the resistance has been set at $20,000, making it a point to beat. Ethereum’s resistance is building to $1,400 where even the hype of the completed Merge has failed to help it beat this level.
Featured image from Finbold, chart from TradingView.com
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