According to Glassnode, cryptocurrency traders saw the largest entry into cryptocurrency exchanges in 2022, as the cryptocurrency market dropped to July 2021 levels. As the data shows, traders moved $5.6 billion worth of Bitcoin to exchanges. Also, the largest altcoin, Ethereum (ETH), has also moved to trading platforms. Here are the details…
Will traders sell Bitcoin and ETH?
Traders moved $5.6 billion in Bitcoin as well as $1.3 billion in Ethereum to their trading platforms to sell. The difference in exits and inflows for Ethereum seems to be less compared to Bitcoin’s net flow. On the other hand, the net flow of the US dollar-pegged Tether stablecoin remains negative as demand for USDT increases during the capitulation of traders in the cryptocurrency market.
The increased rate of entry allows traders and investors to take profit or loss and shows his reluctance to hold cryptocurrencies as they want to leave the field. However, active selling creates an oversupply in the market, leading to a discount and a potential trend reversal. As we reported on cryptokoin.com, Bitcoin saw a huge jump directly from $29,000 to $32,000 within a few hours, showing an abundance of resistances above $30,000 to $40,000 with the market correcting within a few days.
What is the latest situation in the market?
Dismal market conditions have only intensified in the last 24 hours. Less than a week ago, the primary cryptocurrency challenged $40,000 after its most recent Fed meeting last week, but to no avail. The landscape changed drastically and BTC began to depreciate rapidly. At first, it dropped from $4,000 to a multi-week low of $36,000, but it turned out to be just the beginning.
A few days later, Bitcoin dropped another $2,000 and struggled yesterday at around $33,000. However, that wasn’t all. In the hours that followed, it fell more than $3,000 and fell below $30,000 for the first time since mid-July 2021.