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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Outflows Rock Bitcoin, Ethereum In Wake Of Price Decline

Best Owie
Best Owie
1 year ago
2 mins read
bitcoin and ethereum

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Bitcoin and Ethereum had led the market in the recent price decline. It has led to a lot of profit-taking on the part of investors that want to avoid incurring more losses in the long term. Nevertheless, investors remain undeterred as they continue to accumulate coins. The result of this has been intense outflows for both Bitcoin and Ethereum leading to a negative net flow for both digital assets.

Bitcoin, Ethereum Investors Not Backing Down

Bitcoin slid down below $40,000 at the start of the week and brought with it a wave of long liquidations. These prices have seen sentiment turn mostly negative in the meantime but for those who are accumulating, it has been a good time to increase their bags and the exchange outflows corroborate this.

Related Reading | TA: Ethereum Steadies Above $3K, Why Upsides Could be Capped

For the past day, exchange outflows have surpassed that of inflows by more than $200 million. It has come out to $1.1 billion in bitcoin being moved out of centralized exchanges while inflows remain at $886.4 million for the same time period.

The same trend was the case for the second-largest cryptocurrency by market cap, Ethereum. Outflows had also come out ahead of inflows by more than $70 million. In total, there was $658.2 million worth of inflows and outflows went as high as $729.2 million.

📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $886.4M in
⬅️ $1.1B out
📉 Net flow: -$236.2M#Ethereum $ETH
➡️ $658.2M in
⬅️ $729.2M out
📉 Net flow: -$70.9M#Tether (ERC20) $USDT
➡️ $816.5M in
⬅️ $648.4M out
📈 Net flow: +$168.0Mhttps://t.co/dk2HbGwhVw

— glassnode alerts (@glassnodealerts) April 13, 2022

Tether Says More Accumulation

The amount of Tether that flowed into exchanges compared to that which flowed out also supports investors are continuing the accumulation trend. Mostly when investors are moving their Tether to exchanges, it is so they can purchase cryptocurrencies, a large portion of which ends up going to Bitcoin and Ethereum.

Related Reading | How Shiba Inu Soared 20% On Robinhood Listing, Watch Out For Volatility

$816.5 million were moved into centralized exchanges over the past day and $648.4 million were moved out. This saw a positive net flow of $168 million worth of Tether moving into exchanges. 

It follows the same trend from the previous day which had seen bitcoin record a negative net flow of -$45.4 million for bitcoin and -$74.4 million for Ethereum. Tether had also recorded a positive net flow of $132.3 million, indicating that investors are accumulating through the downtrend.

Bitcoin price chart from TradingView.com

BTC loses footing above $40,000 | Source: BTCUSD on TradingView.com
Featured image from US News Money, chart from TradingView.com
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Best Owie
Best Owie

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

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Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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