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$2.68B in outflows as crypto exchanges face market pressure

$2.68B in outflows as crypto exchanges face market pressure

GrafaGrafa2024/10/08 08:25
By:Liezl Gambe

Major crypto exchanges have experienced significant capital outflows totaling $2.68 billion over the past month. 

This trend, based largely on stablecoin withdrawals, suggests short-term price pressure for the market. 

Despite this, investors maintain a positive outlook for the fourth quarter. 

DefiLlama’s CEX Transparency data reveals that nine out of ten monitored exchanges reported negative inflows, with most of the outflows attributed to stablecoins. 

The balance of stablecoins on exchanges fell from $38.5 billion to $35 billion, a $3.5 billion decline. 

Stablecoin outflows are often seen as a lack of buying pressure, indicating that investors are not ready to increase their portfolios at this time. 

Adding to the concern, BlackRock executed its second major Bitcoin (CRYPTO:BTC) withdrawal in 2024. 

Based on CryptoQuant’s data, BlackRock’s ETF-linked address saw the removal of 256 BTC. 

BlackRock’s total Bitcoin holdings now exceed 340,000 BTC, but its accumulation has slowed. 

The last notable withdrawal occurred in May when Bitcoin’s price fell below $60,000. 

The reduction in stablecoin liquidity, coupled with BlackRock’s withdrawal, has caused some uncertainty among investors. 

Coinglass’s ETF Net Inflow data shows that three of the first five trading days in October recorded negative inflows, indicating caution among Bitcoin ETF investors. 

Despite these concerns, optimism remains for Bitcoin’s performance in the fourth quarter. 

According to Timothy Peterson, an investor who tracks historical price movements, Bitcoin may rebound toward the end of October. 

He stated, "Most of 'Uptober' doesn't start until after the 19th. Be patient." 

If stablecoin outflows continue and Bitcoin balances in ETFs keep declining, the market may struggle to achieve gains in October, but positive momentum is expected later in the quarter. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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