The Bitcoin liquidity across various centralized exchanges is not changing course. More and more liquidity resides on trading platforms, which can prevent any uptrend from materializing. It is a very different trend from the Ethereum supply across trading platforms, which substantially decreases.
Bitcoin Liquidity Keeps Growing
It is not entirely abnormal to see more BTC reside in exchange wallets these days. There has been an uptrend for weeks now, and it is not slowing down yet. More Bitcoin liquidity makes it easier for traders to acquire BTC, but it can also have an adverse effect. Too much volume can keep the price suppressed, something that has been happening to Bitcoin for almost a month.
Per Viewbase, the past week was not too positive for Bitcoin in this regard. Its liquidity across exchanges increased by over 27,000 BTC. It may not seem like much, but someone will have to start buying if the price wants to move higher. Such vast quantities are hardly ever purchased on exchanges by one or two traders, so there is a long way to go for the world’s leading cryptocurrency.
Most of the liquidity ended up at Coinbase, which never comes as a surprise. It is one of the biggest trading platforms for Bitcoin and other cryptocurrencies in the world. An influx of over 29,500 BTC shows it is also the premier place to liquidate Bitcoin unless there would be very high demand all of a sudden. Finding people willing to buy up this supply will prove challenging, however.
Coinbase, Binance, and Bitstamp are the only platforms with over 1,000 BTC inflow this past week. All other platforms have much lower numbers. In Huobi’s case, there was a Bitcoin liquidity outflow of nearly 6,000 BTC. Most of those funds ended up at Coinbase, it seems, showcasing how traders keep moving funds around.
Ethereum Flows Remain Negative
The difference between Ethereum’s flow and the Bitcoin liquidity across exchanges cannot be more different. Whereas BTC has an increasing supply, the amount of ETH on exchanges keeps dwindling. Last week, the liquidity got reduced by 320,176 ETH. A very interesting figure, considering how Binance saw over 132,000 ETH deposited in that week.
The biggest outflows come from Gemini and FTX, which is equally surprising. Both platforms are known for trading Bitcoin mainly, yet it seems customers are interested in ETH. Together, these platforms saw nearly 445,000 ETH leave their wallets. A substantial amount, even though there is still 16% of the Ethereum supply on exchanges. Bitcoin only has 7.4% of its supply on these trading platforms.
It remains unclear what the future will bring for both Bitcoin and Ethereum. Any attempt at mounting a price surge is squashed down immediately and turned into a bearish trend. Given the current Bitcoin liquidity on exchanges, that may not change anytime soon. For Ethereum, the outflow is promising, yet it may not make too much of a difference right away.