In the past week, the cryptocurrency industry had unfavorable developments that arguably caught many cryptocurrency traders and investors in fear. This might have resulted in the massive outflow of the two largest cryptocurrencies from different exchanges. The amount of Bitcoin (BTC) and Ether (ETH) moved from crypto exchanges in the past week surpassed the inflows.
Bitcoin outflows reached almost $4 billion
According to the information shared by Glassnode, an on-chain analytics platform, the on-chain Bitcoin outflow in the past week reached about $3.9 billion. Within the same time, only $3.5 billion worth of Bitcoins were moved to crypto exchanges. Overall, the net flow of the Bitcoins moved in/out the exchanges was -$373.7M.
Besides the Bitcoin outflow report, the second-largest cryptocurrency took a similar trend. About $723.3M worth of Ether was moved to cryptocurrency exchanges in the past week; however, a higher amount was moved off these exchanges. Glassnode data showed that the exchange had an outflow of $799.9M worth of ETH, with the net flow being -$76.6 million.
However, the crypto exchanges recorded a different activity with the US dollar-backed stablecoin, Tether (USDT). USDT’s worth $2.4 billion was moved to exchanges in the past week. The outflows, however, amounted to $2.3 billion, which represents a +$107.2 million net flow.
BitMEX Bitcoin outflow
It’s agreeable to note that the derivatives trading platform, BitMEX, contributed significantly to the total Bitcoin outflows in the past week. Following the US charges against the exchange owners, the traders began the massive withdrawal of Bitcoins out of fear. As of October 3, it was reported that over 40,000 Bitcoins had been withdrawn from the platform in just a few days.
Following the current price of Bitcoin at $10,648, these Bitcoins represent a $425 million Bitcoin outflow on BitMEX.