Ethereum (ETH) Sees Significant Outflows from Exchanges, Potentially Reducing Selling Pressure
In a surprising turn of events, Ethereum (ETH) experienced a significant outflow from centralized exchanges this week, providing a potential relief from selling pressure on the ETH market, according to a recent analysis by crypto analytics firm IntoTheBlock. The firm’s head of research, Lucas Outumuro, tracked Ethereum’s netflows, which measure the amount of ETH moving in and out of centralized exchanges by subtracting withdrawals from deposits. The analysis revealed that more than $1 billion worth of Ethereum netflows left exchanges, indicating a decrease in selling activity.
– These outflows coincide with a notable increase in ETH’s network fees, which surged by over 30% during the same period. Network fees often reflect the willingness of users to spend and demand for the asset, and the spike suggests a growing interest in utilizing Ethereum.
Bitcoin (BTC) Also Experiences Outflows, Breaking Eight-Week Trend
Bitcoin (BTC), the leading cryptocurrency, also witnessed a substantial outflow from centralized exchanges recently, interrupting an eight-week trend of inflows. Data from IntoTheBlock reveals that BTC saw net outflows amounting to $300 million. Furthermore, Bitcoin’s network fees registered a steep increase of more than 50% during the same timeframe, reflecting heightened activity on the network.
– The recent outflows of Bitcoin and Ethereum from exchanges are noteworthy as they tend to have an impact on the average price of crypto assets. A study published by crypto analytics firm Santiment in 2021 found that significant inflows often lead to an average price drop of 5% for cryptocurrencies.
Market Response: ETH and BTC Prices
At the time of writing, Ethereum (ETH) is trading at $2,512, reflecting a gain of 2.64% in the past 24 hours. The second-ranked cryptocurrency by market cap appears to be benefiting from the outflows and increased demand. Likewise, Bitcoin (BTC) is trading at $47,478, marking a nearly 3% increase in the past 24 hours.
– The positive market response to the outflows indicates that the reduction in selling pressure has boosted investor sentiment and confidence in both Ethereum and Bitcoin.
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Analyst comment
Positive news: The significant outflows of Ethereum (ETH) and Bitcoin (BTC) from centralized exchanges are potentially reducing selling pressure and increasing investor sentiment and confidence in both cryptocurrencies. Ethereum has seen a gain of 2.64% in the past 24 hours, while Bitcoin has increased by nearly 3%.
