Amid substantial selling pressure, leading Bitcoin holders moved their crypto assets from exchanges last week. According to Glassnode, weekly net BTC exchange flows turned negative in the last week.
Total weekly outflows touched $7.3 billion, compared to the inflows worth $5.4 billion. Bitcoin exchanges saw a consistent rise in outflows throughout the last week. The scenario was different for Ethereum, the second most dominant digital asset. ETH exchange flow turned positive last week as inflows stood at $3.3 billion, compared to outflows of $3.1 billion.
Despite different exchange flow patterns, Bitcoin and Ethereum saw similar price action in the last week. Both digital assets are up by almost 2%.
“Bitcoin began last week trading in the range of $38,000 before rallying midweek on the news of an executive order on crypto from US President Joe Biden’s White House, rising to above $42,000. The executive order set out key aims for US institutions to lay the groundwork for better regulation. Bitcoin’s price fell away quickly after the announcement and is now trading back in the $38,000-$39,000 range. Ethereum similarly soared to above $2,700 on the announcement but is back trading around $2,550 this morning,” Simon Peters, a Market Analyst at eToro, said.
Bitcoin Exchange Supply
Last month, the BTC exchange supply dropped to its lowest level in nearly three years. According to crypto analytics platform Santiment, digital exchanges now hold approximately 10.8% of the supply, which is the lowest level since December 2018. With the recent surge in outflows from leading digital exchanges, BTC bulls are hoping that a dip in supply will drive the demand for the world’s most valuable crypto asset.
“This week would appear to have several key flashpoints, including a vote on proof-of-work mining ban in the EU today and the issue of El Salvadoran Bitcoin Bonds,” Peters added.
