Bitcoin, Ethereum Exchange Inflows Suggest Sell-Offs Are Far From Over
May 24 2022 - 1:00PM
NEWSBTC
Bitcoin and Ethereum have been at the forefront of market sell-offs
that were triggered by the UST crash. Since then, sellers have
continued to dominate the market and even with buyers making
significant moves, it continues to be a seller’s market. The hope
had been that a reversal in this trend would be witnessed with the
start of the new week. However, inflow and outflow trends have
indicated that sell-offs may continue for much longer. Bitcoin,
Ethereum Inflows Remain High For Monday, there were some
encouraging reversals in the price of major digital assets in the
space. These included the reclaiming of $30,000 on the part of
Bitcoin, while Ethereum had recovered once more above $2,000.
However, this would prove to only make an already bad situation
worse as sellers had ramped up inflows into exchanges to realize
some gains. Related Reading | MicroStrategy Will Not Dump Any
Of Its Bitcoin, CFO Reveals What this resulted in was more than
$1.1 billion in BTC flowing into exchanges in a single day. This
showed a reversal from the previous day of net flows that had seen
outflows surpass inflows once more. Monday was much worse as
centralized exchanges saw net inflows of $67 million in a
single-day period. The same was the case for the second-largest
cryptocurrency by market cap, Ethereum, whose net flows were also
positive, even surpassing that of Bitcoin. ETH had seen exchange
inflows as high as $589.4 million in a 24-hour period while
outflows had come out to $497.4 million. What this amounted to was
a $92 million net flow. This indicates that there are even more
sellers in ETH than there are in bitcoin. As such, the decline of
the digital asset below $2,000 was expected. BTC price declines
below $30,000 | Source: BTCUSD on TradingView.com Recovery In
Sight? The inflow and outflow trends have been alternating for a
time now. This is evident in the past two days alone where net
flows have been negative one day and then positive the next. Going
off this trend, it is possible to deduce that there could very well
be a reversal following Tuesday’s trading day. Related Reading
| Eight Consecutive Red Closes: Is Bitcoin Headed For A
Recovery? Alternatively, one thing that comes with a decline in
prices has always been investors looking for the opportunity to
take advantage of the lower prices. This always leads to an
increase in outflows as more investors accumulate tokens. Another
indicator that would suggest a reversal is the USDT inflow and
outflow trends. USDT net flows continue to be positive which is
good for the market. It shows that investors are bringing more
funds into centralized exchanges to be able to purchase and
accumulate more tokens. Featured image from CryptoSlate, chart from
TradingView.com
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