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Record-breaking $5.6 billion in Bitcoin flowed on centralized exchanges as traders were leaving the market in panic
Cryptocurrency traders provided the largest inflows to cryptocurrency exchanges in 2022, as the crypto market dropped to levels of July 2021, per Glassnode.
As the on-chain provider’s data suggests, traders moved $5.6 billion in Bitcoin on centralized cryptocurrency exchanges from Glassnode’s tracked list. The total inflows on the market will be significantly higher.
📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $5.6B in
⬅️ $3.9B out
📈 Net flow: +$1.7B#Ethereum $ETH
➡️ $1.3B in
⬅️ $1.2B out
📈 Net flow: +$15.3M#Tether (ERC20) $USDT
➡️ $1.2B in
⬅️ $1.8B out
📉 Net flow: -$544.4Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) May 10, 2022
Besides Bitcoin, traders were actively dropping their Ethereum holdings as they moved $1.3 billion on trading platforms in order to sell. The difference in outflows and inflows for Ethereum is less crucial compared to Bitcoin’s netflow.
The netflow of Tether stablecoin remains negative as the demand for it increased during the capitulation of traders on the cryptocurrency market. Besides market conditions empowering Tether, the de-pegging of UST stablecoin could have led to transferring the trading volume into alternative stable solutions like Tether.
How do large inflows affect the market?
An increased pace of inflows shows the reluctance of traders and investors to hold digital assets as they wish to take profits or losses and leave the space. But active selling creates a supply surplus on the market, which leads to a discount and a potential trend reversal.
Bitcoin already saw a massive bounce directly from $29,000 to $32,000 in a matter of hours, which showed the abundance of any resistance above $30,000 up until $40,000 as the correction on the market happened in a matter of a couple of days, which is a speculative sign.
The number of longs on centralized exchanges also shows a positive dynamic toward the gradual recovery of the market, which suffered a 23% drop in recent days. At press time, Bitcoin trades at $31,809.
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