$2 Billion of Bitcoin drained by Crypto Traders in the last 24 hours
Investors have moved their $2 Billion BTC from exchange circulation in the last 24 hours. What does it mean for market liquidity?
According to Glassnode, a crypto market insights firm, Bitcoin has seen massive outflow in the last 24 hours. Investors are moving their crypto assets and during the last 24 hours there has been a net flow of -$926.2 Million.
Bitcoin, the first crypto asset has gained a lot of upward momentum in the last month. It is currently priced at $40447.31 (16th April 2022). The 24-hour volume is down by 29% as per Coinmarketcap data.
Bitcoin outflows on Exchanges
Centralized exchanges are suffering losses as more and more investors are using private and non-custodial solutions for storing crypto assets. As per the data by Glassnode, even if Ethereum and Tether reported a positive flow, it is not sufficient to cover even the half of the loss exchanges face due to Bitcoin outflows.
This data doesn’t embody OTC markets and decentralized exchanges. However, $2 Billion worth of outflow would have huge impact on market liquidity.
Exchange Inflow is defined as an amount of coin deposited into the exchange and outflow is defined as amount of coin withdrawal from exchanges
Each Day Change Circulate
The stability of crypto assets and the market sentiment is usually accounted with the daily flow change. Huge outflow means bullish sentiment for the market. However, the market is showing bearish movement. This negative change also means accumulation trend hence low liquidity.
Lower levels of liquidity mean additional pressure on market, increased volatility and lower market trades. However sometimes it is considered as a positive factor for an asset as it implies supply reduction. Alas this is not the case right now and the markets are showing bearish trend.
Bitcoin Market Value
The bearish sentiment led to the loss in market value of Bitcoin. In the last week, BTC lost around 5% of its value. It is ranging between $39000 to $40000 for few days. There are no signs of recovery anytime soon.
