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.
Alex DovbnyaThe 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.
Arman Shirinyan
Dan Burgin