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Cryptocurrency Market Shows Subdued Netflow. Here's What It Means

Mon, 05/29/2023 - 16:56
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Alex Dovbnya
As Bitcoin rallies to a two-week high following a tentative U.S. debt ceiling deal, the cryptocurrency market shows subdued netflow, suggesting potential future volatility
Cryptocurrency Market Shows Subdued Netflow. Here's What It Means
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The cryptocurrency market is showing signs of subdued netflow, potentially hinting at impending volatility.

A recent analysis from data analytics firm Glassnode revealed that the net realized profit/loss sent to exchanges has balanced out, demonstrating a marginal netflow of $420,000.

Compared to the heights of the bull and bear market, when the net flow recorded peaks of $389 million and $205 million respectively, current exchange flows are relatively placid.

This analysis comes at a time when Bitcoin, the leading cryptocurrency, rallied to a two-week high of $28,452, primarily attributed to a tentative debt ceiling deal in the U.S.

After a prolonged stalemate, this deal aims to prevent a looming financial crisis that could have seen the country default on its immense debts.

XRP Trading Comes to This Exchange
Many believe that this recent surge in Bitcoin's price and the broader crypto market is largely driven by this political development.

The Glassnode analysis potentially suggests a volatility spike in the near future, although the timing and extent of this possible volatility remain uncertain.

The largest cryptocurrency is currently changing hands at $27,627 on the Bitstamp exchange. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at