Ethereum and Bitcoin forex flows are hitting new lows, with the rate returning to outflow dominance by August as investors withdraw the digital asset as we can see in today’s Bitcoin news.
The stock market flows of Ethereum and Bitcoin show that these assets are being withdrawn from the exchanges at an increasing pace, showing that few are ready for sale right now. Glassnode reports show that bitcoin exchange flows returned to the dominance of outflows in August as investors began pulling the digital asset. It added that the market had gone through a number of phases of flow dominance over the past year. The previous dominance of the outflows was observed in late 2020 before BTC rose from the ATH from $ 20,000.
Overview of the cryptocurrency market. Source quantify crypto
More than 465,000 BTC left the exchanges in July, at which time Glassnode reported that trading balances had dropped to their lowest level since the deep crypto-winder in 2018. When BTC leaves the centralized exchanges, it is considered a bullish sign. The assets could be moved to custody or cold wallets or simply tokenized and invested in defi. When there are huge inflows in the stock exchanges, it is considered bearish as investors could prepare for liquidation.
Data analyst Will Clemente commented last month that this is one of the biggest declines in BTC on exchanges in history:
“Exchanges have fallen 111,033 BTC in the past 30 days. One of the sharpest declines in stock market stocks in Bitcoin history. “
Glassnode found that the same thing happened with ETH. All of ETH held on stock market hit an ATH low at the same time that ETH 2.0 staking hit a new high. The analysis provider stated that the recent rise in ETH price was supported by a continued outflow of ETH supply on the exchanges. Those eth balances fell this week to an ATH low of 13% of circulating supply, equivalent to 15.3 million ETH. It added that a large chunk of 5.7% of total ETH supply found its way into the Beacon Chain deposit contract, with the ETH.20 staking contract now freezing nearly 7 million ETH, or $ 21 billion .
# Bitcoin exchange flows have returned to outflow dominance by August as investors withdraw $ BTC.
The market has gone through a number of phases of dominance of foreign exchange flows over the past year, with the dominance of outflows last seen in late 2020. pic.twitter.com/BQLlw06SJr
– glassnode (@glassnode) August 19, 2021
BTC prices fell again and fell another 2.5% over the past day. According to CoinGecko, BTC was trading at $ 44,224 at the time of writing and the asset is down 3.2% from the same time the correction took place a week ago.
DC Forecasts is a leader in many crypto news categories, strives for the highest journalistic standards and adheres to strict editorial guidelines. If you are interested in offering your expertise or contributing to our news website, please feel free to contact us at [email protected]