The withdrawal of Bitcoin (BTC) and Ethereum (ETH) from centralized exchanges has been indicative of an investor trend toward further stockpiling. As a result, investors shifted billions of dollars worth of coins each week from exchanges. Despite the recent increase in the price of bitcoin and Ethereum, exchange outflows have persisted, indicating that investors are continuing to buy.
According to Glassnode data, the net flows for BTC over the most recent day were as high as $158.5 million. BTC had entered exchanges for a total of $498 million, but it had exited for more than $656 million.
Similar net flow patterns were observed for Ethereum, with $170.7 million flowing into exchanges and $212.7 million leaving them. This resulted in a negative net flow over the course of 24 hours of -$42 million. As per figures from IntoTheBlock, ETH net flows had remained negative on a rolling 7-day basis but by a slim margin.
Both Bitcoin and Ethereum have had negative exchange net flows over the last two weeks. Daily outflows continue to outpace inflows, creating negative net flows, as has been the case in the past.
Bitcoin and Ethereum have swung between green and red during the past 24 hours, registering slight fluctuations. At the time of writing, ETH has decreased by 0.93% over the past 24 hours, and BTC is down by 0.58%. The threshold to overcome for Bitcoin is now at $20,000, where resistance has developed. Even the publicity from the just concluded Merge has not been able to help Ethereum overcome the barrier that has been building up at $1,400.
Although the cryptocurrency market has been consolidating for some time, inflows of Tether (USDT) into the central bank suggest that this trend may be coming to an end. Positive net flows for the stablecoin point to the conclusion of the sell-offs and the start of a buy trend in the market. Since the net flows for the previous day were just about $77 million, it is still difficult to say with certainty when an extensive recovery would occur.