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Ethereum Flying off Exchanges While Bitcoin Moves in the Opposite Direction: Crypto Analytics Firm IntoTheBlock
Ethereum (ETH) is leaving crypto exchanges at a rapid rate this week, while Bitcoin (BTC) is moving in the opposition direction, according to Lucas Outumuro, the head of research at analytics firm IntoTheBlock.
In a new analysis, Outumuro notes Ethereum recorded nearly $1 billion in net outflows over the past week, which he says suggests “strong buying activity” and points to potential accumulation.
According to IntoTheBlock, net flow is measured by getting the amount of inflows of any crypto asset to centralized exchanges minus the outflows.
Conversely, Bitcoin recorded weekly centralized exchange net inflows of $132 million, potentially signaling selling pressure.
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.
Despite the difference in exchange flows, both crypto assets saw a spike in fees and on-chain activity, according to Outumuro.
Outumuro also notes that investors have been holding on to their Bitcoin at high rates: 60% of BTC supply has been held for more than one year, and a record-setting 24.3% has been held for more than five years.
BTC is trading at $24,621 at time of writing. The top-ranked crypto asset by market cap is up 2.75% in the past day and more than 5% in the past week.
ETH is trading at $1,966 at time of writing. The second-ranked crypto asset by market cap is up nearly 5% in the past 24 hours and more than 14% in the past seven days.
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