Traders Moved Record-Breaking $5.6 Billion Worth of BTC on Exchanges Amid Market Turmoil

Bitcoin

Record-breaking $5.6 billion in Bitcoin flowed on centralized exchanges as traders were leaving the market in panic

Cryptocurrency traders provided the largest entries to cryptocurrency exchanges in 2022 as the crypto market fell to July 2021 levels, per glass knot.

As the on-chain provider’s data suggests, traders moved $5.6 billion in Bitcoin on centralized cryptocurrency exchanges from Glassnode’s tracked list. The total inflows on the market will be significantly higher.

The netflow of Tether stablecoin remains negative as the demand for it increased during the capitulation of traders on the cryptocurrency market. Besides market conditions empowering Tether, the de-pegging of UST stablecoin could have led to transferring the trading volume into alternative stable solutions like Tether.

How do massive entries affect the market?

Besides Bitcoin, traders were actively dumping their Ethereum holdings as they moved $1.3 billion across trading platforms in order to sell. The difference in outflow and inflow for Ethereum is less crucial than the net flow of Bitcoin.

An increased pace of inflow shows the reluctance of traders and investors to hold digital assets as they wish to take profits or losses and exit the space. But active selling creates excess supply in the market, leading to a discount and potential trend reversal.

Bitcoin already saw a massive bounce directly from $29,000 to $32,000 in a matter of hours, which showed the abundance of any resistance above $30,000 up until $40,000 as the correction on the market happened in a matter of a couple of days, which is a speculative sign.

The number of long positions on centralized exchanges also shows positive momentum towards the gradual recovery of the market, which suffered a 23% drop in recent days. At press time, Bitcoin is trading at $31,809.

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