With the fall in the crypto market, many things have changed drastically in the space. Mostly, investors are rushing to exit the market before the crash takes away much of their money. This has led to a significant increase in the number of cryptocurrencies flowing into exchanges. Most notably are bitcoin and ethereum, whose daily exchange flows touch billions of dollars.
Billions in crypto for exchanges
Data from the past 24 hours shows that the amount of money being transferred to centralized exchanges is higher than in the previous week. Instead of the $1 billion figure typically recorded, volumes have increased significantly.
glassnode reports Over $3 billion in bitcoin was moved to exchanges in the past 24 hours. Overall, $3.2 billion worth of BTC was recorded to flow into exchanges, with $3.3 billion flowing in, leading to negative net inflows – $103.5 million.
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It was the same with Ethereum, which saw an inflow of $2.1 billion while $1.5 billion had flown in. The positive net inflow of $532.4 million for Ethereum is in line with the outflow trend recorded for the digital asset over the past few months.
Interestingly, although high, the numbers in the last 24 hours are almost 50% lower than the numbers recorded on Sunday. It is understandable that most of the market crash happened late on Sunday, which is how investors wanted to move their money.
Total market cap below $1 trillion | Source: Crypto Total Market Cap on TradingView.com
To put this in perspective, $6.5 billion worth of bitcoin was seen flowing into centralized exchanges on Sunday, while ethereum numbers hit a high of $3.7 billion over the same time period.
Weekly on-chain exchange flow#bitcoin $BTC
️ $6.5B in
️ $6.5B out
Net Flow: -$9.9M#ethereum $ETH
️ $3.7B in
️ $3.5B out
Net Flow: +$181.6M#tether (ERC20) $USDT
️ $3.5B in
️ $3.2B out
Net Flow: +$339.4Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) 13 June 2022
Tether outflow says no accumulation
Tether is the largest of the stablecoins and holds the widest range of crypto trading pairs on the market. Its inflow and outflow trend has often helped to know whether crypto investors were looking to buy coins or were actually dumping their coins.
Related Reading | Bitcoin hits 18-month low, has the market seen its worst?
Tether inflows and outflows for the past two days suggest that investors are turning to the security offered by these stablecoins rather than trying to make a deposit. On Sunday, USDT inflows were slightly above outflows, which is not good news for the crypto market. This trend is now continuing as the inflows have now matched the outflows over the past 24 hours.
This indicates that investors are not buying either bitcoin or ethereum. Instead, they are converting their cryptocurrencies into stable coins to avoid the extreme volatility of the current market.
Featured image from Forbes India, chart from TradingView.com
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