$1.8 Billion in Cryptocurrency Flows Out of the Market as Bitcoin Breaks Through Resistance
The cryptocurrency market was impacted hard by the withdrawals, with $1.8 billion worth of Ethereum, Bitcoin, and Tether leaving the market. We may attribute such a large outflow to the market’s heightened worry.
Ethereum had the market’s greatest withdrawals, with $748 million in the cryptocurrency leaving controlled exchanges. As Glassnode data indicates, Ether’s net flow remains negative at -164 million.
Bitcoin’s net flow is likewise negative, with $700 million in bitcoin exiting the market as traders withdraw their cash from exchanges. Previously, U.Today said that huge withdrawals during the correction phase might result in a supply shock in the future, when cryptocurrency demand rebounds to 2021 levels.
The only cryptocurrency to see a positive net flow was the Ether-based Tether stablecoin, which saw $353 million poured into the market. This could mean one of two things: traders will use their Tether holdings to purchase additional cryptocurrencies, or the Treasury will release additional coins into circulation to balance the asset’s price.
Why do traders choose to withdraw cash from exchanges?
While economic and market factors may influence traders’ willingness to shift assets away from centralised corporations, recent regulatory restrictions on exchanges created fear among bitcoin investors who maintained their holdings on exchanges.
Numerous CEOs warned users that they would be unable to evade financial authorities’ directives and would be forced to prohibit or restrict trading. The statements sparked outflows from all major exchanges, as traders began aggressively shifting cash to cold or hot noncustodial wallets with one-sided access.
Also Read: Tom Brady Admits To Being A Huge Supporter Of Ethereum Founder Vitalik Buterin
Wallets