With the market in turmoil, digital assets like Bitcoin and Ethereum are seeing their prices challenged in a way that has investors shivering. The downtrend had sparked selloffs that had driven prices to yearly lows. Even though the volume is already selling off, it looks like the sellers are not done yet. This is evidenced by the volume of Bitcoin and Ethereum that has been pouring into centralized exchanges recently.

Bitcoin, Ethereum shaken by entries

The inflows had been growing steadily recently And given the volume that has been going to exchanges, this growth is alarming. Major coins Bitcoin and Ethereum tend to hold up better when it comes to markets like this, and while they have held up, investors seem unconvinced that they will continue to do so. This is one of the reasons why the entries have been massive.

Data shows that more than $1.4 billion worth of Bitcoin has flowed into centralized exchanges in the last 24 hours alone. Although this is a decrease from the previous day, when $1.7 billion worth of BTC was transferred to exchanges, it significantly exceeded the outflow rate compared to the previous day.

Related Reading | How Tether Peg Could Predict Bitcoin’s Raging Volatility

Bitcoin outflows in the last 24 hours amounted to $1.2 billion. What this led to was a positive net flow of $233 million.

Ethereum was not left out of this either. If anything, the second largest cryptocurrency by market cap has been hit the hardest by trade inflows. As of the previous day, its receipts had touched $569 million. But unlike Bitcoin, it did not record enough outflows to offset this figure.

BTC continues its downtrend | Source: BTCUSD on TradingView.com

This would continue in Wednesday’s market, in which $658.2 million flowed into centralized exchanges. In the same time frame, there was $651.1 million coming out of trades, leaving a positive net of $7.2 million.

Spell Sale of USDT Exits

One way to indicate whether investors are selling or buying Bitcoin, Ethereum, and other digital assets is through the inflow of stablecoins, and of late, this rate of flow has been anything but encouraging. Tuesday saw $1.1 billion USDT flowing into exchanges, marking a significant figure, but the exits came out high. In total, there was $1.7 billion in USDT trades going out, resulting in a negative $612.1 million net flow.

Related Reading | Funding Rates Fall to Yearly Lows Following Bitcoin’s Drop Below $29,000

What metrics like this show is that investors are likely converting their volatile cryptocurrencies into these stablecoins and taking them off exchanges for safekeeping. Mainly to provide shelter from a highly volatile market.

However, USDT volumes over the past 24 hours are starting to paint a slightly better picture. While outflows reached $738.5 million the day before, inflows were $871.4 million, a net positive flow of $132.9 million. If this trend continues, then the current selling trend could well turn into a buying one which will hopefully trigger a rally in the market.

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

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