$2 Billion of BTC Drained from Centralized Exchanges by Crypto Traders in Last 24 Hours
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Centralized exchanges are continuously using users' funds as more traders and investors decide to use private and noncustodial solutions for storing cryptocurrencies, Glassnode reports. While data does not include the OTC market and decentralized exchanges, $2 billion worth of crypto removed from exchange circulation could still have a strong effect on the market's liquidity.
As data suggests, the crypto market saw outflows of $1.9 billion worth of BTC in the last 24 hours, with $1 billion moving on exchange balances. The net flow of Bitcoin would remain at a negative $925 million. Ethereum and Tether reported a positive flow, but it still does not cover even half of the loss exchanges faced from Bitcoin outflows.
Why does daily exchange flow matter?
The balance of Bitcoin and other major cryptocurrencies on centralized exchanges often represented the sentiment of cryptocurrency traders. Here, large outflows of Bitcoin hint at an accumulation trend among investors.
? Daily On-Chain Exchange Flow#Bitcoin $BTC
— glassnode alerts (@glassnodealerts) April 15, 2022
➡️ $972.2M in
⬅️ $1.9B out
? Net flow: -$926.2M#Ethereum $ETH
➡️ $618.8M in
⬅️ $441.5M out
? Net flow: +$177.3M#Tether (ERC20) $USDT
➡️ $666.8M in
⬅️ $541.3M out
? Net flow: +$125.5Mhttps://t.co/dk2HbGwhVw
As more coins leave exchanges, liquidity on the crypto market drops, which creates additional pressure with increased volatility. While sometimes negative net flow is not tied to accumulation, it is still considered a positive factor for the value of an asset as it removes the supply.
Bitcoin market performance
In the last week, Bitcoin lost around 5% of its value and did not manage to recover almost any part of it.
Alex DovbnyaAt press time, Bitcoin is trading at $40,308 while previously bouncing to $41,150, but since bearish tendencies prevail on the market, the first cryptocurrency quickly retraced to $39,630 yesterday and still merges around that price.
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