CRYPT — A renowned analytics firm estimates that a total of over $1 billion worth of Bitcoin (BTC) and Ethereum (ETH) have been pulled from cryptocurrency exchanges in response to a recent surge in activity of purchase. Into TheBlock has just published a new analysis in which it reveals that the two most important cryptocurrencies saw net exchange outflows totaling $1.4 billion over the past week. Net trade flows is a metric that calculates all flows of an asset into and out of trades. These flows include both incoming and outgoing transactions.
According to IntoTheBlock, the significant increase in net outflows that has occurred over the past week could largely be related to BlackRock submitting an application for a spot Bitcoin exchange-traded fund (ETF). After hearing news of the asset management giant’s entry into the digital asset space, large entities have reportedly re-entered the cryptocurrency markets, according to the analytics firm.
“Looking on-chain, we can see that major players appear to have returned following the possibilities of a Bitcoin spot ETF and increased engagement from TradFi (traditional finance). The number of transactions involving more than $1 million reached an all-time high; whale transactions have increased over the past week. IntoTheBlock discovered that entities that control at least 0.1% of Bitcoin’s supply are in intense accumulation mode by examining the behavior of crypto-whales.
“Large holder inflows are also hitting yearly highs,” the report said. In 2023, the increase in the total amount of Bitcoin that was added to addresses that had 0.1% or more of the supply was the largest on record. Not only is the number of whales increasing, but the number of huge transactions is also increasing. When we compare this information with the net flows from the CEX (Centralized Exchange), we are able to determine that the accumulating entities are in no way related to the exchange, as their net flows were negative, while the net flows significant holders were overwhelmingly positive. As of this writing, one Bitcoin can be purchased for $30,459, while one Ether can be purchased for $1,889.