Recurring market commentary on what’s happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good Morning!
Last week, I introduced the power of on-chain metrics to help investors create an investment framework. We looked at the correlation between whale addresses (addresses consisting of >1,000 BTC), and the price of Bitcoin (BTC). Today, I am bringing you a similar on-chain metric: exchange net flows (net inflows minus outflows).
Exchange net flows
As mentioned last week, all transactions on public blockchains can be tracked. From this, we are able to derive how many crypto assets enter or leave exchanges. It can be assumed that exchange inflows signal selling pressure, while exchange outflows signal that investors are accumulating coins and likely holding them in wallets.
According to data from IntoTheBlock, on Tuesday March 15, there was an outflow of 180k Ether (ETH) from centralized exchanges. The last time such an amount of ETH was withdrawn from exchanges was October 2021, which led to a 15% price increase within 10 days. ETH finished last week in double-figure gains, the only Top 10 crypto by market cap besides Avalanche (AVAX).
Happy Trading!
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