Despite the ongoing price drop, investors continue to accumulate bitcoin at a rapid rate 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 central 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 cryptocurrency exchanges minus the number of net inflows, or BTC entering central exchanges in the past seven days.
The net inflows of the coin indicate accumulation, and the latest numbers indicate “strong demand” for Bitcoin when its price falls below the $30,000 level, according to the researcher.
BTC is trading at $29,109 at the time of writing. The top-rated crypto asset by market capitalization has fallen more than 2.7% in the past 24 hours and more than 2% in the past week.
On the other hand, Ethereum (ETH) saw slight outflows of $84 million last week, after suffering more than $200 million in outflows in the previous week.
According to Outumuro, the movement of cryptocurrencies across exchanges may indicate selling pressure. A 2021 study published by cryptocurrency analytics firm Santiment notes that large increases in exchange flows tend to result in a 5% average price drop for crypto assets.
ETH is trading at $1,665 at the time of writing. The second largest crypto asset by market capitalization is down more than 6% in the last 24 hours and more than 6% in the past seven days.
Read Outumuro’s full analysis here.
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