Despite ongoing price doldrums, investors continue to accumulate Bitcoin at a rapid pace to the tune of hundreds of millions of dollars worth of BTC, according to crypto analytics firm IntoTheBlock.
In a new analysis, Lucas Outumuro, head of research at IntoTheBlock, notes that centralized exchanges witnessed $730 million worth of BTC net outflows in the past week, on the heels of $1 billion worth of outflows the week before.
According to the analytics firm, net outflows are the total amount of Bitcoin leaving crypto exchanges minus the number of net inflows or BTC going into centralized exchanges over the last seven days.
Net exchange outflows point to accumulation, and the recent numbers suggest “strong demand” for Bitcoin when it is priced under the $30,000 level, according to the researcher.
BTC is trading at $29,109 at time of writing. The top-ranked crypto asset by market cap is down more than 2.7% in the past 24 hours and more than 2% in the past week.
Ethereum (ETH), by contrast, witnessed mild outflows worth $84 million this past week, after enduring more than $200 million worth of inflows the week before.
Crypto moving into exchanges can signal selling pressure, according to Outumuro. A 2021 study published by crypto analytics firm Santiment indicates large upticks in exchange inflows tend to lead to an average price drop of 5% for crypto assets.
ETH is trading at $1,665 at time of writing. The 2nd-ranked crypto asset by market cap is down more than 6% in the past 24 hours and more than 6% in the past seven days.
Read Outumuro’s full analysis here.
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Source: https://dailyhodl.com/2022/06/11/bitcoin-btc-flying-off-exchanges-amid-price-stagnancy-according-to-crypto-analytics-firm-intotheblock/