The post Ethereum (ETH) Leaving Exchanges at Rapid Rate This Week, While Bitcoin Moving in the Opposition Direction appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
On August 12, Lucas Outumuro, head of research at analytics firm ‘IntoTheBlock’ published weekly observations about the market.
Lucas covered the last step of preparing Ethereum for the merge, its implications on Ethereum as well as staked ETH, and the upcoming ETHPow token. Lucas also evaluated the institutional demand for Bitcoin, by looking at the previous holding patterns and on-chain activity.
According to Lucas, this week, Ethereum (ETH) is moving away from crypto exchanges at a rapid rate, while Bitcoin (BTC) moves in the opposite direction. Outumuro noted that Ethereum recorded nearly $1 billion in net outflows over the week, which indicates “strong buying activity” and potential accumulation.
Lucas also gave some insightful information on the exchange Netflows.
Exchange Netflows are the net amount of inflows minus the outflows of a particular crypto-asset going in or out of the centralized exchanges. Crypto-assets going into exchanges may indicate selling pressure, whereas crypto-asset withdrawals signal potential accumulation.
As per Lucas Outumuro from IntoTheBlock,
Bitcoin recorded relatively large inflows into centralized exchanges of $132M following last week’s outflowsETH, on the other hand, has seen consistent outflows over the past week, with almost $1B leaving exchanges, suggesting strong buying activity
Crypto analytics firm Santiment published a study in 2021 pointing out that large upticks in exchange inflows supposedly lead to an average price drop of 5% of crypto assets.
Outumuro noted that investors have been holding on to Bitcoin at high rates.
The largest Bitcoin holdings sit with long-term-oriented entities
Over 60% of Bitcoin’s supply has been held for over 1 yearA record 24.3% has been held for over 5 yearsEntities that entered Bitcoin 5 years ago were mostly crypto-native firms and individuals
With the approach towards crypto and stocks on parallel lines now, institutional investors access to BTC is becoming greater than before
According to Outumuro, even after a difference in exchange flows of BTC and ETH, both the crypto assets saw a surge in fees and on-chain activity.
“Fees indicate the sum of total fees spent to use a particular blockchain. This tracks the willingness to spend and the demand to use BTC or ETH. On-chain activity for both Ethereum and Bitcoin spiked along with prices.”