Bitcoin reaches $55k as exchange net flows plunge

Bitcoin is back to the psychological $55,000 zone amid declining on-chain activity on exchanges.

Bitcoin (BTC) is up 0.9% in the past 24 hours and is trading at $55,000 at the time of writing. The leading cryptocurrency briefly fell to an intraday low of $53,650 on Sept. 8 as bearish sentiment dominated the crypto market.

Moreover, BTC’s daily trading volume increased by 33%, reaching $22 billion.

According to data provided by Santiment, Bitcoin witnessed a daily exchange inflow of 68,470 BTC on Sept. 7, before taking a deep dive below the $54,000 mark. Data shows a 68% decline in the asset’s inflows over the past two days, currently sitting at 21,742 BTC.

Quite similarly, the number of Bitcoins leaving the exchanges has also plunged 65% in the same timeframe — falling from 65,847 to 22,802 BTC.

At this point, Bitcoin is seeing an exchange net outflow of 1,060 BTC, worth over $583 million at the reporting time.

Despite the surge above the $55,000 mark, the Bitcoin Relative Strength Index is still hovering at 35, according to data from Santiment. The indicator shows that the flagship cryptocurrency is still oversold which could be due to the market-wide selloff.

Per a crypto.news report, spot BTC exchange-traded funds in the U.S. saw a net outflow of $706 million last week. The large amount of outflows brought stronger bearish momentum to Bitcoin amid increased FUD.