While Bitcoin and altcoins have experienced volatile movements in recent days, an analysis company has drawn attention to the difference between Bitcoin (BTC) and Ethereum (ETH).
According to the analysis platform Sentora (formerly IntoTheBlock), Bitcoin and Ethereum have exhibited quite contrasting exchange flow dynamics this week.
According to the analytics company, while BTC saw a net outflow of $1.34 billion, ETH inflows exceeded $1 billion.
Company data shows a net outflow of approximately $1.34 billion in Bitcoin, with a significant amount of BTC being withdrawn from exchanges to private wallets.
Sentora notes that this trend indicates a decrease in immediate selling pressure and a strengthening preference among investors for long-term holdings.
In contrast, Ethereum exhibits a different dynamic compared to Bitcoin. According to the data, Ethereum experienced a net inflow of $1.03 billion into exchanges.
Following the recent ETH price increase, this rise in exchange liquidity could be interpreted as a sign of profit-taking or concerns about a potential supply surplus.
“This week, there has been a significant divergence between BTC and ETH.”
A net outflow of $1.34 billion from exchanges in BTC = supply shifting to their own custody, reducing immediate selling pressure.
ETH saw a net inflow of $1.03 billion into exchanges = more liquidity in exchanges after the rally, potential profit-taking.”
Bitcoin is trading at $92,300, up 2.6% in the last 24 hours, while Ethereum is trading at $3,230, up 1.2%.
*This is not investment advice.