Exchange Outflow Reflects Continuation Of BTC And ETH Accumulation

Crypto trading is quite common these days due to its high returns and convenience. Uncertainties are an inevitable part of this industry. Bitcoin and Ether are two of the most influential coins in the Crypto space. These two coins are the most trusted Cryptos by investors around the globe. But at present, the outflows of these two coins are facing a high accumulation among traders.  Will the 21 million hard cap on Bitcoin ever be exceeded? Find out why the 21 million hard cap on this digital asset must be met.

With the rise of these outflows, the exchanges are facing a huge loss. Investments worth billions are leaving the Crypto exchanges every week. Traders are continuing to move out the coins from the exchanges. There has been a recovery in BTC and ETH prices, but this outflow is not stopping any time soon. 

BTC And ETH’s Position In The Market 

There are different coins in the market but none of them can be compared with Bitcoin or Ethereum. Bitcoin is an early release in this market. Since then it has captured a dominant position in the market. In terms of market cap, it holds the top position as well. 

Many fresh projects have been released, but none of them can capture BTC’s position. Due to its many real-life utilities, this places Bitcoin as a top-performing Crypto as well. 

Just after Bitcoin, Ethereum is the second-most popular coin in this industry. It is more efficient than Bitcoin’s network in many ways. ETH’s network follows the PoS mechanism which is quite efficient and good for the environment. 

It is a favorite of many developers and so they develop their projects on this network. Also, the transactions are faster and more secure on this network. All these factors attract investors and developers to use Ethereum’s network. 

Net Flows Of BTC And ETH Continues To Be Negative 

At present, both BTC and ETH are passing through a tough phase as the negative outflows are surging high.  For the past several weeks, the net flows are turning out to be negative for both of these coins. Even based on a single day, the inflows are far behind the high rate of outflows. In turn, this fact is leading to negative flows in the exchanges. The negative flow of both coins is making the conditions worse for these networks. 

Glassnode has prepared data on this aspect that shows the latest condition of both networks. The data reflects that a few days back, Bitcoin’s net flow went to the highest range of 158 million USD. While the amount of BTC inflow in the exchanges was around 498 million USD. Though the amount seems huge, the rate of outflow is even larger than the total inflow. The outflow rate is over 656 million USD and exceeds the amount of inflow. 

In the case of ETH, the trend of net flow is more or less similar to BTC. The amount inflow is around 170.7 million USD, while the outflow from the Crypto exchanges is 212.7 million USD. Within 24 hours, the amount of net flow became negative, which is -42 million USD. As per another data on this aspect by IntoTheBlock, Ethereum’s net flows have been negative continuously for a week. Though this margin is low, the negative margin reflects the deplorable condition of ETH is a reality. 

Will This Situation Recover Soon?

Though the market is strengthening for some time now, this trend of outflow may end soon. The inflow of USDT in the centralized exchanges is an indication of this. Stablecoin is experiencing a positive trend at present. Its net flow is turning at a positive rate. This shows an indication that the buying trend will be in the market. 

But there are no clear chances of indicating a definite period as to when this recovery will start. The net flows are still low and so it cannot be clearly defined when the recovery period will come!


The outflows for BTC and ETH are happening at quite a high scale. Though the trends for both these coins are moving towards the greener side, there is no clear indication of when it will happen! 


Vince is a tech geek, has a passion for sharing knowledge and loves to tinker with different gadgets. Whenever he gets a new gadget he just open the box and figure out how the gadget works without reading the manual.

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