Bitcoin Records Massive Outflows from Cryptocurrency Exchanges Amid Panic

Updated:

Cryptocurrency exchanges continue to record large outflows as reports show that $1.8 billion worth of Bitcoin (BTC), Ethereum, and Tether have recently left the market. Analysts have pointed at the extreme fear in the market as the catalyst for this outflow.

Ethereum posted the highest outflows, with $748 million worth of ETH leaving centralized exchanges. Glassnode recently reported that the net flow for Ether remains at -164 million.

Bitcoin’s net flow also fell into the negative range, with $700 million BTC worth funneling out of centralized trading platforms to personal custody. Analysts from this top NFT blog have cautioned that increased outflows during market correction could trigger supply shock along the line when the demand for crypto returns to 2021 levels.

That said, Tether was the only cryptocurrency that recorded a positive net flow with $353 million worth of USDT pouring into the market. This indicates one of two things; either that traders plan on purchasing more cryptos with their USDT holdings or that the Treasury pumped more coins into circulation to balance the price of the asset.

While the prevailing macroeconomic setting and other factors could influence traders’ decision to move funds away from centralized trading platforms, the recent limitations experienced by crypto exchanges from regulatory bodies triggered a panic in the crypto space, forcing investors to become more aggressive in holding their assets.

Key Bitcoin Levels to Watch — March 20

Bitcoin has retreated from the $42,000 area after a bullish recovery last week. The benchmark cryptocurrency has now fallen to the $41,000 support level, as bears threaten to drag prices lower.

BTCUSD 2022 03 20 19 29 36.png
BTCUSD – 4-Hour Chart on Gemini. Source: TradingView

However, the $41,000 holds critical significance for the cryptocurrency considering the pivot support at that level. That said, I expect a clean bounce off this level in the coming hours due to possible accumulation at that level. In the meantime, a bearish continuation would likely not proceed beyond the $40,000 support.

Meanwhile, my resistance levels are at $42,000, $42,400, and $43,000, and my key support levels are at $41,000, $40,000, and $39,000.

Total Market Capitalization: $1.85 trillion

Bitcoin Market Capitalization: $780.7 billion

Bitcoin Dominance: 42.2%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.