Crypto market faces massive outflows as traders lose trust in exchanges

Massive inflows of money have poured into the crypto market as $1.8 billion worth of Ethereum, Bitcoin, and Tether have left the crypto market. We can force such a strong flow of money to extreme fear in the market.

$1.8 billion worth of crypto leaves market as Bitcoin breaks through resistance

Ethereum has faced the largest outflow in the market, with $748 million in crypto transferred from centralized exchanges. As Glassnode data shows, net traffic for Ether remains at -164 million.

Bitcoin’s net outflow remains negative, with $700 million worth of crypto leaving the market as traders move their funds off exchanges. Previously, U.Today noted that massive outflows during the correction could cause a supply shock in the future when demand for the cryptocurrency recovers to 2021 levels.

The only cryptocurrency facing a positive net inflow is the Ether-based stablecoin Tether, with $353 million poured into the market. This could reveal two things: traders will buy more crypto with their Tether holdings, or the issuing Treasuries add money to circulation to equalize the asset’s price.

While economic and market reasons can influence traders’ desire to move funds away from centralized entities, the limitations that exchanges have recently faced from regulators have caused panic among crypto investors, who hold their shares on exchanges.

Many CEOs have warned users that they cannot avoid orders from financial regulators and that they will have to ban or restrict traders. The statements encouraged inflows from all significant exchanges as traders actively moved funds to cold or hot non-industrial wallets with one-way access.

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