Mass ETH and BTC Withdrawals from Exchanges: Market Impact

important point:

  • Ethereum and Bitcoin withdrawal from Interambios: Over 1 billion in ETH and 300 million in BTC leave the centralized platform.
  • Increase in Network Fees: ETH and BTC network fees have increased by more than 30% and 50% respectively, indicating greater usage demand.
  • Impact on crypto asset prices: Significant net inflows from exchanges are usually preceded by an average 5% decline in cryptocurrency prices.

Ethereum (ETH) has recorded a notable withdrawal from centralized exchanges this week, according to analysis from cryptoanalysis firm IntoTheBlock, an action that could ease selling pressure on the ETH market.

Lucas Outumuro, leader of IntoTheBlock’s research team, conducted a study on Ethereum net flow, a metric that calculates the movement of ETH in and out of centralized exchanges by subtracting ETH deposits from their withdrawals.

important ethereum exit

Outumuro highlighted that Ethereum saw net outflows of more than $1 billion from centralized exchanges this week. In parallel, ETH network fees, which are an indicator of interest and demand for use of the asset, increased by more than 30% during the same period.

Similarly, Bitcoin (BTC) saw a similar movement, with $300 million leaving centralized exchanges, ending an eight-week streak of net inflows. This week saw Bitcoin network fees increase by more than 50%.

Impact on the price of crypto assets

According to a study conducted in 2021 by Santiment, another renowned crypto analysis firm, a significant inflow of crypto assets into exchanges typically results in a 5% drop in the average price of said assets.

This pattern of net withdrawals from centralized exchanges suggests a possible strengthening in market sentiment towards Ethereum and Bitcoin as well as a possible decline in selling pressure. These dynamics are important for understanding current crypto market trends and anticipating future movements in the prices of these digital assets.


Source link

About Admin

Check Also

Mexico demands clarification from Tesla and insists it starts construction of its new factory as soon as possible

02/20/2024 12:55 Updated 02/20/2024 12:55 There are many questions that surround Mexico Gigafactory, Why has ... Read more

Leave a Reply

Your email address will not be published. Required fields are marked *