Tag: Outflows

Will Ethereum’s Records Biggest Crypto Exchange Outflow in 2022 Propel More Upward Momentum?

by Blockchain News

Ethereum witnessed the largest crypto exchange outflow this year, given that coins exited in droves to the tune of more than 180,000 ETH.

Market insight provider IntoTheBlock explained:

“Largest Outflows in 2022 – over 180k ETH was withdrawn from centralized exchanges within a single day. The last time such a magnitude of ETH left exchanges was in Oct 2021, preceding a 15% price increase within ten days.”

Image

Source: IntoTheBlock

Cryptocurrencies leaving exchanges signals bullish because it illustrates a hodling culture, given that coins are transferred to cold storage and digital wallets, reducing selling pressure.

Therefore, the massive outflows suggest that Ethereum is experiencing scarcity and this coupled with burnt Ether are bullish signs. 

Since the London Hardfork or EIP-1559 upgrade went live in August 2021, the supply of Ethereum continues to be depleted based on the burning mechanism incorporated.

The non-fungible token (NFT) market has been making burnt Ether go through the roof. IntoTheBlock stated:

“NFT trading activity has been the largest burner of Ether since the introduction of EIP 1559 OpenSea activity alone has led to 230k ETH out of circulation. As NFT volumes peaked in January, Ether’s net issuance dropped to historic lows of nearly -2%.”

Ethereum is one of the sought-after networks in the NFT sector, which continues to take the world by storm.

ETH has been experiencing an upward momentum since the second-largest cryptocurrency surged past the psychological price of $2,500 observed on March 15.

With IntoTheBlock acknowledging that a 15% surge in Ethereum price was witnessed the last time massive crypto outflows were observed, it remains to be seen how things turn out this time around. 

Image source: Shutterstock

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Ethereum Records Biggest Crypto Exchange Outflow in 2022, Will this Propel More Upward Momentum?

by Blockchain News

Ethereum witnessed the largest crypto exchange outflow this year, given that coins exited in droves to the tune of more than 180,000 ETH.

Market insight provider IntoTheBlock explained:

“Largest Outflows in 2022 – over 180k ETH was withdrawn from centralized exchanges within a single day. The last time such a magnitude of ETH left exchanges was in Oct 2021, preceding a 15% price increase within ten days.”

Image

Source: IntoTheBlock

Cryptocurrencies leaving exchanges signals bullish because it illustrates a hodling culture, given that coins are transferred to cold storage and digital wallets, reducing selling pressure.

Therefore, the massive outflows suggest that Ethereum is experiencing scarcity and this coupled with burnt Ether are bullish signs. 

Since the London Hardfork or EIP-1559 upgrade went live in August 2021, the supply of Ethereum continues to be depleted based on the burning mechanism incorporated.

The non-fungible token (NFT) market has been making burnt Ether go through the roof. IntoTheBlock stated:

“NFT trading activity has been the largest burner of Ether since the introduction of EIP 1559 OpenSea activity alone has led to 230k ETH out of circulation. As NFT volumes peaked in January, Ether’s net issuance dropped to historic lows of nearly -2%.”

Ethereum is one of the sought-after networks in the NFT sector, which continues to take the world by storm.

ETH has been experiencing an upward momentum since the second-largest cryptocurrency surged past the psychological price of $2,500 observed on March 15.

With IntoTheBlock acknowledging that a 15% surge in Ethereum price was witnessed the last time massive crypto outflows were observed, it remains to be seen how things turn out this time around. 

Image source: Shutterstock

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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 outflows from centralized exchanges surge to 100K BTC monthly

by Cointelegraph

Bitcoin outflows from centralized exchanges have surged to their highest level year-to-date, with roughly 40,000 BTC being withdrawn over the past seven days.

According to the Glassnode’s August 2 The Week On-Chain report, Bitcoin outflows have accelerated to a rate exceeding 100,000 BTC per month for just the third time since September 2019. The on-chain analytics provider estimates that just 13.2% of circulating BTC are currently held on exchanges — a new low for 2021.

“This represents a near full retracement of the significant inflow volume observed during the May sell-off,” the report noted.

BTC Exchange Net Position Change – Glassnode

Outflows surged to nearly 150,000 BTC monthly at the end of April 2020 following the violent “Black Thursday” crash that saw crypto prices tumble by more than 50% in less than two days after then-U.S. President Trump announced a travel ban between Europe and the U.S. in March as the coronavirus pandemic intensified. Despite the aggressive crash, Bitcoin had rebounded by 150% by the end of May 2020, driving heavy accumulation.

Outflows again came close to 150,000 BTC monthly in November 2020 as Bitcoin surged to test its then-record price high of $20,000, with BTC rallying into new all-time highs the following month.

Glassnode notes divergent trends between Coinbase and Binance throughout most of 2021, with Coinbase having experienced significant outflows while Binance has been the largest recipient of BTC.

However, Binance’s reserves are now beginning to dwindle, with 37,500 BTC (worth roughly $1.5 billion) exiting the exchange over the past week.

Coinbase balances remained steady in June. While the exchange received 30,000 BTC in mid-July, 31,000 BTC was withdrawn from the platform this past week.

Related: Traders are withdrawing 2,000 BTC from centralized exchanges daily

Looking at the macro sentiment, the on-chain analytics provider referred to its “Liveliness metric” to identify trends in accumulation.

The metric, which measures the ratio of the sum of coin days destroyed and the sum of all coin days ever created, indicates a broad trend of accumulation following May’s immediate sell-off.

“It seems that HODLing and accumulation is the most likely dominant trend in the on-chain market,” the report concluded.

BTC Liveliness chart: Glassnode