$1.8 billion per day Bitcoin (BTC), Ethereum (ETH) and Tether’s (USDT) with its withdrawal from the market cryptocurrency The market is experiencing major exits.
Ethereum Ranks First in Exits from Exchanges
According to Glassnode data, Ethereum leads with $ 748 million among cryptocurrencies withdrawn from centralized exchanges. The data shows that the net outflow for Ethereum is at the level of -162 million dollars.
📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $637.3M in
⬅️ $698.6M out
📉 Net flow: -$61.4M#Ethereum $ETH
➡️ $621.9M in
⬅️ $784.3M out
📉 Net flow: -$162.4M#Tether (ERC20) $USDT
➡️ $691.3M in
⬅️ $337.6M out
📈 Net flow: +$353.7Mhttps://t.co/dk2HbGwhVw— glassnode alerts (@glassnodealerts) March 20, 2022
However, Bitcoin’s net flow data also remains negative. As investors continue to withdraw their cryptocurrencies from centralized exchanges, $700 million BTC also left the exchanges. According to experts, large stock market exits during correction periods may cause a supply shock in the future if the demand for cryptocurrencies reaches the level of 2021.
However, among these three, Tether was the only stablecoin to experience a positive entry into the stock markets. Net $353 million in Tether (USDT) was moved to stock markets by investors. According to experts, there may be two explanations for the positive flow of Tether to cryptocurrency exchanges. The first is that investors move their Tether assets to exchanges to buy more cryptocurrencies, and the second is that they send USDT to exchanges to keep Tether’s 1 dollar indexed price stable.
Why Investors Withdraw Cryptocurrencies From Exchanges?
Generally, investors who want to hold crypto money for a long time transfer these assets to their cold wallets. In this case, it can be said that this is positive for the price, as the expected amount of crypto money to be sold on exchanges decreases.
On the other hand, high outflows in Bitcoin and Ethereum and high inflows in Tether indicate that crypto money is bought with hot money and these assets are withdrawn to wallets to be “not sold”.
*Not investment advice.