Tag: Bitcoin Inflows

Bitcoin Inflows Suggest Institutional Investors Are Moving Back Into The Market

by NEWSBTC

Bitcoin and the crypto market at large had suffered outflows that coincided with the massive sell-offs that rocked the market. This contributed to the downtrend that saw bitcoin touch towards six-month lows while investors who had gotten into the market later suffered massive losses. This outflow trend is beginning to reverse so as bitcoin and other digital assets begin to record inflows after a long drought.

Bitcoin Inflows Back Up

The past week for bitcoin has been an encouraging one. The digital asset is nowhere near its previous highs but had managed to recover from its recent lows. It had run up to $38,000 once again, reinstating some level of faith back in the market. On the institutional investors’ side, this trend, albeit a bit slower, is the same as investors begin to gradually move back into the cryptocurrency.

Related Reading | Bitcoin Funding Rates Remain Negative For More Than A Week

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In the latest CoinShares report, we see that bitcoin has begun to record market inflows once more. This is a deviation from the end of 2021 and the beginning of 2022 where outflows reached record highs. Greatly impacted by the minutes released by the Fed, bitcoin alone had recorded outflows to the tune of $107 million in a single week, setting a new record.

Bitcoin price chart from TradingView.com

BTC recovers from market crash | Source: BTCUSD on TradingView.com

However, in the past two weeks, the tide is turning towards inflows as CoinShares reported the first week of inflows after massive outflows. This past week continues to mirror this trend as inflows have continued.

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Inflows to bitcoin were reported to total $22 million for last week. A small number compared to what had become the norm by the third quarter of 2021, but a reassuring figure nonetheless. It’s a step up from last week when BTC’s total AuM crashed to a six-month low of $29 billion.

Altcoins Continue To Suffer

Altcoins have not mirrored this movement of bitcoin this time around. Instead, altcoins continue to bear the brunt of the market onslaught as outflows continue to be the order of the day.

Leading altcoin Ethereum has now marked its 8th consecutive week of inflows. In this time period, the altcoin has seen a total of $272 million flow out of the week, marking some of the highest negative sentiment towards the digital asset.

Related Reading | The Uber Rich Investors Are Picking This Altcoin Over Bitcoin

Other altcoins like Cardano, Solana, and Polkadot, which are fast-becoming investor favorites, did not fare well for the week either. All of these digital assets saw another week of outflows.

Multi-asset funds and Blockchain equity investment products deviated from the performance of altcoins. Following in the footsteps of bitcoin, each of them recorded inflows for the week, $32 million for multi-asset funds, and $15 million for Blockchain equity investment products.

Featured image from Bitcoin News, chart from TradingView.com

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Bitcoin Bearish Signal: Binance Observes Massive Inflow Of 10k BTC

by NEWSBTC

Bitcoin on-chain data shows the crypto exchange Binance  observed large inflows amounting to almost 10k BTC yesterday.

Bitcoin Netflow Shows A Huge Positive Spike As 10k BTC Enters Binance

As pointed out by an analyst in a CryptoQuant post, the BTC netflow had a big positive spike yesterday, a sign that’s usually bearish for the price.

The “all exchanges netflow” is an indicator that measures the net amount of Bitcoin entering or exiting wallets of all exchanges. The metric’s value is simply calculated by taking the difference between the inflows and the outflows.

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When the indicator has positive values, it means there are currently more inflows happening than outflows. Such a trend is often bearish as investors usually deposit their Bitcoin for selling purposes.

On the other hand, when the value of the metric is negative, it implies outflows are overwhelming inflows as a net amount of BTC is exiting exchanges. This kind of trend can be bullish for the price of the crypto as holders generally withdraw their coins to hold them.

Related Reading | Bitcoin Leverage: Lack Of Liquidations Could Indicate Another Wave Of Selling

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Now, here is a chart that shows the trend in the Bitcoin netflow over the last couple of months:

Bitcoin Netflows Binance

Looks like the value of the metric showed a huge positive spike recently | Source: CryptoQuant

As you can see in the above graph, yesterday the Bitcoin netflow showed that almost 10k BTC entered exchanges yesterday within an hour.

A look at the chain data reveals these inflows were to Binance. Interestingly, just a few hours later, the crypto exchange Gemini observed an outflow of about 10k BTC, cancelling out these inflows and making the netflow neutral again.

Bitcoin Netflow Gemini

The negative spike makes up for the positive one from a few hours earlier | Source: CryptoQuant

As mentioned earlier, inflows are usually bearish for the price of Bitcoin. However, since outflows of the same amount occurred just a couple of hours later, the netflows effectively became neutral.

Related Reading | Anthony Scaramucci Urges Bitcoin Holders To Think Long-Term As Downtrend Won’t Last

Now, outflows can be bullish for the price if they occurred for the purpose of accumulation. But that doesn’t necessarily have to be the case. If the investors who were behind the withdrawal intend to sell them through OTC deals, the effect on the price may be bearish instead.

BTC Price

At the time of writing, Bitcoin’s price floats around $36.8k, down 12% in the last seven days. The below chart shows the trend in the value of the coin over the last five days.

Bitcoin Price Chart

BTC's price has retraced a lot of the recovery that it made over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradignView.com, CryptoQuant.com

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Bitcoin Bearish Signal: Trend Is Again Shifting From Outflows To Inflows

by NEWSBTC

On-chain data shows Bitcoin netflow trend is once again shifting from outflows to inflows, a sign that could prove to be bearish for the crypto.

Bitcoin Netflow Trend Is Changing To Inflows From Outflows

As per the latest weekly report from Glassnode, BTC netflows have once again started to move from a trend of net outflows to more inflows.

The “all exchanges netflow” is an indicator that measures the net amount of Bitcoin entering or exiting wallets of all exchanges. The metric’s value is calculated by simply taking the difference between the inflows and the outflows.

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When the indicator has negative values, it means outflows are overwhelming inflows as a net amount of BTC is being transferred out of exchanges. Investors usually withdraw their coins from exchanges for accumulation purposes. And so, such a trend can be bullish for the crypto.

On the other hand, positive netflow values signify that a net amount of Bitcoin is being deposited into exchange wallets. Since holders generally move their crypto to exchanges for withdrawing to fiat or for purchasing altcoins with them, such values of the indicator may be bearish for the coin.

Now, here is a chart that shows the trend in the BTC netflow over the course of 2021:

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Bitcoin Netflows

Looks like BTC inflows are on the rise | Source: The Glassnode Week Onchain (Week 52)

As you can see in the above graph, the netflows have been oscillating between the +5k BTC and -5k BTC lines throughout the year.

Though there have been some brief periods where the indicator’s value broke out of this range, but overall the trend has been consistent.

Related Reading | Five Bitcoin Short Films For A Lazy Holiday Evening: Energy, Money, &… Basket?

Looking at the chart, it seems like the indicator is currently shifting towards inflows again, after a period of big outflows.

The report notes that it’s worth keeping an eye on this trend to see if these inflows intensify or rather decline towards the start of the new year.

Related Reading | Bitcoin Leverage Ratio Hits New ATH, Is More Price Decline Coming?

If the inflows do sustain for a while, then the outlook could be bearish for the price of BTC, similar to back in May of this year.

BTC Price

Bitcoin’s price reached almost $52k yesterday, but has since declined again. At the time of writing the crypto’s price floats around $49.2k, up 0.5% in the last seven days. Over the past thirty days, the coin has lost 9% in value.

The below chart shows the trend in the price of BTC over the last five days.

Bitcoin Price Chart

BTC's price seems to have plunged down in the past 24 hours | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

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Bitcoin Inflows Shows Institutional Investors Are Back On The Bull Train

by NEWSBTC

Bitcoin recovered above $50K on Tuesday following a rallying that pulled the market back into the green. October has so far been good for the digital asset and investors have begun to return again into the market amid recovering prices. On the investment front, inflows show that institutional interest in bitcoin is returning after inflows had fallen short of expectations in the previous weeks.

Bitcoin Makes Up 76.6% Of Weekly Inflows

A report published by CoinShares shows that bitcoin inflows had picked back up. Altcoins had been taking more market share as their popularity grew due to the rise of decentralized finance (DeFi) networks like Ethereum and Solana. These assets had dominated market inflows as investors had flocked to profit from their growth. Altcoins had seen the largest shares of market inflows throughout the month of September. But the close of the month had shown a decisive turn in institutional investors’ sentiments.

Related Reading | Why The Bitcoin At $100K Discourse Remains Strong Despite Market Crashes

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The report showed that institutional inflows were $90 million for the previous week, and bitcoin alone had seen inflows of $69 million. This accounted for 76.6% of the total inflows, showing that institutional investors are not turning their attention back to bitcoin. The highly appreciative asset has a proven track record of long-term success and its recent turn in prices has been evidence of that.

Investors’ confidence in BTC is on the mend. The Fear & Greed Index moved into greed, showing mounting buying pressure on the market. Bitcoin and its related products are seeing increased interest from investors, and most importantly, big money is moving back into the asset.

Bitcoin price chart from TradingView.com

Bitcoin price chart from TradingView.com


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BTC breaks $52K resistance point | Source: BTCUSD on TradingView.com

Market Inflows Pick Up As Altcoins Concede

Inflows in the market have picked up in recent weeks. This marks the 7th consecutive week of inflows and a total of $411 million has moved into the market. Altcoins have given up some of the market shares which they had pinched from the top cryptocurrency. Ethereum inflows for the week had totaled $20 million, down 3% from its peak to only 25% of total inflows.

Related Reading | Bitcoin Shakes Off Bloody September As Price Breaks $50K, Headed For New All-Time Highs?

Solana which had dominated inflows for a while in September had recorded a significant drop in inflows. The asset recorded only minor inflows of $0.7 million. Alongside other altcoins which had suffered the same fate. Cardano, the third-largest cryptocurrency by market cap, only saw inflows totaling $1.1 million. While Polkadot, Tezos, and Binance each recorded inflows totaling $0.8 million.

Volumes have however remained low despite inflows. At the height of the bull market in May, volumes had reached $8.4 billion. Now, volumes are at a low of $2.4 billion, representing an over 70% drop from their peak in May.

Featured image from Coinnounce, chart from TradingView.com

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BTC sinks to $40K, Bitcoin inflows to centralized exchanges surge

by Cointelegraph

Bitcoin inflows to centralized exchanges have surged, prompting bearish speculation the crypto markets could be building up to a violent wash-out.

Lex Moskovoski, CIO at Moskovoski Capital, shared data showing that 22,917 BTC was transferred onto centralized exchanges in a single hour on May 18. Moskovoski noted the hourly inflow was the largest since the March 2020 “Black Thursday” crash.

With outflows from exchanges typically being inferred as indicating crypto assets are being moved into cold storage for security or DeFi protocols for yield generation, inflows are interpreted as assets being moved onto centralized platforms to be sold.

Data compiled by on-chain crypto analytics firm Glassnode shows the past two days have seen consecutive all-time highs produced for net transfer volume onto Bitcoin on to leading centralized exchange, Binance. The data was shared by Twitter analyst William Clemente III to his 70,400 followers, triggering bearish price predictions on social media.

The chart indicates roughly 35,000 Bitcoin worth more than $1.4 billion has been deposited on Binance in the past 48 hours.

“Feels like capitulation,” said Kraken’s growth lead, Dan Held. Clemente replied: “Let’s see one final nasty liquidation wick.”

Reasons to be cheerful

Despite Bitcoin’s price grinding down to post local lows below $40,000, some analysts are finding reasons to be bullish.

Popular analyst, Lark Davis, noted the recent downturn has pushed Bitcoin’s 14-day relative-strength indicator into oversold territory for the first time since March 2020, suggesting the crash may be nearing its plateau.

Others are welcoming capitulation as a likely catalyst for a bullish recovery, predicting a swift return to upward momentum once selling has become exhausted.

Twitter user “YHRW80” noted surging flows into Bitcoin’s spot and derivatives markets during 2021, concluding that the dominant emotion gripping the markets is “greed” rather than fear.

However, Bitcoin’s Fear and Greed Index disagrees with YHRW80’s analysis, describing current Bitcoin market sentiment as “extreme fear.”

There was some welcome news today, with Indian media reporting the country’s government is set to rethink its planned crypto ban and form a new panel of experts to explore regulating crypto assets in India.

Some analysts suggest the catalyst for the surging inflows is tomorrow’s looming deadline for controversial stablecoin issuer Tether to disclose its quarterly financial records as part of its settlement with the New York Attorney General’s office.

Last week, Tether posted a breakdown of its reserves for the first time, asserting three-quarters of the assets backing its stablecoin are cash, cash equivalents, and other short-term deposits and commercial paper.