To say the least, Bitcoin daily exchange net flows have been unpredictable over the last month. This is owing to the multiple swings between dumping and stacking by investors in the space, each of which has had an impact on the price of the digital asset in their own way. However, net flows have begun to achieve a balance, which is sadly not positive.
The last day’s inflows and outflows have not been frightening in any sense, but the fact that it continues to trend towards inflows is a testament to the sell-offs that have shaken the market. According to Glassnode statistics, which show net flows between the two, more BTC is moving into centralized exchanges than out of them. On the last day, exchanges saw a total outflow of R12 billion BTC, while inflows totaled R13 billion. This resulted in a R631 billion net positive flow.
This is unsurprising given that more investors are attempting to exit the digital asset to avoid more losses. Even with the accumulating trend observed among major investors, it is insufficient to disrupt the quantity of BTC being shifted to centralized exchanges for sale.
This has had a detrimental influence on the price of bitcoin, which has fallen below R339K once more. The fact that more USDT is leaving exchanges than entering implies that investors are shifting to stablecoins for safety. As a result, they are not purchasing cryptocurrencies such as bitcoin.
Even while the price of bitcoin continues to fall, interest from investors, particularly smaller ones, has not subsided. The number of addresses holding at least 0.1 BTC reflects this newfound interest. After dropping during the price crisis, the number has now risen to a new all-time high of 3,706,019 addresses having more than 0.1 BTC on their balance.
Given that these small investors have minimal market control, this has had little effect on the price. However, it says a lot about how investors perceive the current market environment, which many see as an opportunity to buy coins at a discount.
Nonetheless, the digital asset’s downward momentum persists. As the price decrease continues, more addresses are being activated. Bitcoin is currently trading at R333.8K, having dropped below its R6.7 trillion market value.
