Massive amount of BTC being moved away from exchanges despite the crypto market showing negative performance
According to the last Glassnode posted Datacryptocurrency traders withdrew $1.6 billion worth of BTC from exchanges, in addition to $1.1 billion withdrawn by Ether traders.
Massive outflows from cryptocurrency exchanges are usually considered a positive thing for the market as the decreasing selling pressure should follow the outflows. Despite large outflows of Bitcoin, the net flow of the first cryptocurrency stays at negative $360 million, while the net flow for Ethereum stays positive.
The third-largest asset on the list, Tether, also showed outflows from the asset over the past 24 hours, which could indicate less selling pressure after 12 days of downward movement on BTC.
Amid the downtrend, Bitcoin has lost around 12% of its value, diving further down after retracing from the local top of $47,000.
Have the whales stopped selling?
According to Glassnode data covered by U.Today recently, long-term holders and whales are still actively selling their assets despite increased outflows from centralized exchanges. The rate of selling and buying by long-term holders is still negative, indicating continued capitulation.
Unfortunately, other on-chain metrics are also following a bearish pattern as demand for Bitcoin stays relatively low and traders are not actively entering the market. Social sentiment indicators like the Fear and Greed index are also showing that the market is far away from becoming positive once again.
