Inflows to Bitcoin and Ethereum Exchanges Suggest Sell-Offs Aren’t Over
The UST crisis spurred a wave of market sell-offs, with Bitcoin and Ethereum at the forefront. Sellers have continued to dominate the market since then, and even though buyers have made major movements, it remains a seller’s market. With the start of the new week, it was hoped that a reversal in this tendency would be seen. However, inflow and outflow statistics suggest that sell-offs might last a long time.
There were some hopeful price reversals in significant digital assets in the industry on Monday. Bitcoin, for example, had reclaimed $30,000, while Ethereum had risen beyond $2,000 for the first time. However, this would exacerbate an already dire situation, as sellers increased inflows into exchanges in order to profit. In a single day, more than $1.1 billion in Bitcoin was transferred into exchanges. This was a shift in net flows from the previous day when outflows had once again surpassed inflows. Monday was significantly worse, with net inflows of $67 million on organized markets in a single day.
The same was true for Ethereum, the second-largest cryptocurrency by market size, which saw positive net flows that even surpassed Bitcoin’s. In a 24-hour period, ETH exchange inflows reached $589.4 million, while outflows were $497.4 million.
This resulted in a net flow of $92 million. This suggests that ETH has even more sellers than bitcoin. As a result, the digital assets drop below $2,000 was forecast. For a long period, the inflow and outflow patterns have been alternating. This is demonstrated by the fact that net flows have been negative one day and positive the next. Based on this pattern, a reversal might very likely occur after Tuesday’s trading session.
The USDT inflow and outflow patterns are another sign that suggests a turnaround. USDT net flows remain positive, which is beneficial to the market. It demonstrates that investors are putting more money into centralized exchanges in order to buy and hold more coins.
