Centralized Exchanges Have Lost About $2 Billion in Bitcoin in the Last 24 Hours
According to Glassnode, centralized exchanges are continuing to use users’ funds while more traders and investors choose private and noncustodial options for holding cryptocurrency. While the OTC market and decentralized exchanges are not included in the statistics, the withdrawal of $2 billion in crypto from exchange circulation might have a significant impact on the market’s liquidity.
In the previous 24 hours, the crypto market saw outflows of $1.9 billion worth of BTC, with $1 billion moving on exchange balances, according to statistics. Bitcoin’s net flow would stay negative at $925 million. Although Ethereum and Tether recorded a positive flow, it is still insufficient to cover even half of the losses experienced by exchanges due to Bitcoin outflows.
On centralized exchanges, the balance of Bitcoin and other major cryptocurrencies typically reflected the emotions of cryptocurrency traders. Large withdrawals of Bitcoin suggest that investors are building up their holdings.
Liquidity in the crypto market decreases as more funds leave exchanges, putting further pressure on the market and increasing volatility. While negative net flow is not always linked to accumulation, it is nevertheless a good element for an asset’s value because it reduces supply.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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