With the decline of the crypto market, there have been a number of things that have drastically changed in the space. For the most part, investors have been quick to get out of the market before the crash takes a larger chunk of their funds. This has led to a significant increase in the amount of cryptocurrencies flowing into exchanges. The most notable have been Bitcoin and Ethereum, whose daily exchange flows have reached billions of dollars.
Billions in crypto for exchanges
Data from the last 24 hours shows that the amount of funds being transferred to centralized exchanges increased during the last week. Instead of the sub-$1 billion figures that have usually been recorded, the volume has increased significantly.
glass node reports that more than $3 billion worth of Bitcoin had moved onto exchanges in the last 24 hours. In total, $3.2 billion worth of BTC was recorded entering exchanges, with $3.3 billion exiting, leading to a negative net flow of -$103.5 million.
Related Reading | Over 253,000 Traders Liquidated as Crypto Bloodbath Continues
The same thing happened with Ethereum, which had also seen an inflow of $2.1 billion while $1.5 billion had flown out. The positive net flow of $532.4 million for Ethereum is in line with the outflow trend that had been recorded for the digital asset in recent months.
Curiously, although high, the figures for the last 24 hours are almost 50% below what was recorded on Sunday. This is understandable given that most of the market decline occurred in the late hours of Sunday, causing investors to want to move their funds.
Total market cap below $1 trillion | Source: Crypto Total Market Cap on TradingView.com
To put this in perspective, on Sunday there was a flow of bitcoins worth $6.5 billion on centralized exchanges, while Ethereum’s numbers reached $3.7 billion in the same time frame.
🚨 Weekly Chain Exchange Flow 🚨#bitcoin $BTC
➡️ $6.5 billion in
⬅️ $6.5B out
📉 Net flow: -$9.9M#ethereal $ETH
➡️ $3.7 billion in
⬅️ $3.5B out
📈 Net flow: +$181.6M#Tie (ERC20) $USDT
➡️ $3.5B in
⬅️ $3.2B out
📈 Net flow: +$339.4Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) June 13, 2022
Tether outflows say no accumulation
Tether is the largest of the stablecoins and has the widest range of crypto trading pairs on the market. Its in and out trend has often helped tell if crypto investors were looking to buy coins or if they were, in fact, dumping their coins.
Related Reading | Bitcoin Falls to 18-Month Lows, Has the Market Seen the Worst?
The ins and outs of Tether over the past two days show that instead of trying to accumulate, investors are turning to the safety these stablecoins provide. On Sunday, USDT inflows were slightly above outflows, which is not good news for the crypto market. This trend has now continued as the last 24 hours have now seen entries matching exits.
What this indicates is that investors are not buying bitcoin or Ethereum. Rather, they are converting their cryptocurrencies into stablecoins to escape the extreme volatility of the current market.
Featured image from Forbes India, chart from TradingView.com
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