Trend on cryptocurrency market slowly changing, but it does not mean that bounce will happen immediately
Cryptocurrency exchange NetFlow has changed drastically over the past four weeks as investors suddenly started withdrawing most of their holdings to their crypto wallets. Such a trend is normal for the crypto market when a Rebound is coming.
As Santiment’s data suggests, Bitcoin saw a massive surge of coins moving off of exchanges yesterday, which was also the largest daily amount of coins withdrawn in the last four months. Investors moved away more than 40,000 BTC.
The supply of coins on exchanges has declined by about 9% as a result of the above transactions and movement of funds over the past few weeks. A negative netflow is generally considered a positive sign for the market as it reduces the chances of an upcoming sell-off in the market.
However, the low percentage of the existing supply on exchanges is not a necessary condition for a recovery, as it does not attract fresh funds to the market in any way. Unfortunately, the inflow to the cryptocurrency market remains on an extremely low level, especially if we are talking about institutions.
According to a recent report by CoinShares, institutional investors have not made any investments in the market. The fund’s only current movement is to short the ETP which gives investors reverse exposure to bitcoin.
The lack of new inflows and the movement on the network in general are also projected on the chart of the digital gold. In the last few weeks, Bitcoin has been showing extremely low volatility on the market, with the price moving in the 2% price range. At press time, the first cryptocurrency is trading at $19,152.
