Exchanges have witnessed a surge in inflows within the past 24 hours as a trend of whale distribution recently picked up.
Exchange netflows have increased in the past 24 hours
Data from blockchain intelligence provider Glassnode reveals an increase in exchange netflows, as investors sent $1.5 billion worth of BTC, ETH and USDT into exchanges on January 4. In contrast, $1.39 billion worth of these assets left exchanges within the same time frame. This marks an exchange netflow of over $115 million in 24 hours.
Out of the cumulative value of over $115 million, ETH saw the highest net flow, with $56.1 million recorded. USDT and BTC witnessed respective netflows of $40.4 million and $19.1 million. This metric has triggered concerns among proponents, as investors usually send risk assets to exchanges with the intent to sell them off.
In addition, the CryptoQuant BTC Exchange Reserve indicator reveals a bearish increase in BTC balances on crypto exchanges. An increase in exchange reserves signals higher selling pressure on investors. This surge materialized barely 24 hours after reports revealed that addresses holding at least 1 BTC reached an ATH of 979,163.
Whale transactions pick up amid a healing market
This pattern of increased exchange deposits comes amid a distribution trend recently embarked on by whales, as selloff risks pick up. Blockchain surveillance system Whale Alert recently indexed these movements, the latest of which saw the transfer of 9,251 BTC ($155.6 million) between two unidentified wallets on Jan. 4. In addition, a previous Santiment report revealed that whales were gradually losing interest in BTC.
The dominance of these movements at a time when the markets have engineered a four-day-long relief rally is not uncommon. Most investors look to sell off their holdings at the slightest sight of a market recovery, especially following a lengthy downtrend. Several assets, including BTC and ETH, have printed four consecutive winning candles since January 1.
As of press time, BTC has gained by 1.43% in the past week, changing hands at $16,830. The asset has been trading flat within 24 hours following a fierce resistance at yesterday’s high of $16,991. Meanwhile, ETH is trading at $1,250 at the time of reporting, up 4.36% in the past 7 days.