Despite the ongoing price slump, investors continue to accumulate Bitcoin at a rapid rate to the tune of hundreds of millions of dollars worth of BTC, according to crypto analytics firm IntoTheBlock.
In a new analysis, Lucas Outumuro, head of research at IntoTheBlock, notes that centralized exchanges saw $730 million in net BTC outflows last week, following $1 billion in outflows the previous week.
According to the analytics firm, net outflows are the total amount of Bitcoin leaving crypto exchanges minus the number of net inflows or BTC entering centralized exchanges in the last seven days.
Net currency outflows indicate accumulation, and recent numbers suggest “strong demand” for Bitcoin when priced below the $30,000 level, according to the researcher.
BTC is trading at $29,109 at the time of writing. The top-ranked crypto asset by market capitalization is down more than 2.7% in the past 24 hours and more than 2% in the past week.
Ethereum (ETH), on the other hand, saw slight outflows worth $84 million last week, after suffering over $200 million in inflows the previous week.
Crypto moving through exchanges may signal selling pressure, according to Outumuro. A 2021 study published by crypto analytics firm Santiment indicates that large increases in exchange flows tend to lead to an average price drop of 5% for crypto assets.
ETH is trading at $1,665 at the time of writing. The 2nd largest crypto asset by market capitalization is down more than 6% in the last 24 hours and more than 6% in the last seven days.
Read Outumuro’s full analysis here.
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