All buying the dip, but are they all buying BTC as well?

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Despite the fact that Glassnode charts show Bitcoiners filling their pockets, exchanges are seeing record inflows as investors sell their BTC for ETH.

During this week’s crypto market bloodbath, several retail Bitcoiners bought the dip, according to on-chain numbers, with the small guys accumulating an extra 12,000 Bitcoin (BTC) in the last month.

Analyst William Clemente III shared data gathered by on-chain analytics provider Glassnode that showed the number of individuals owning between 0.01 and 0.1 BTC increased as the price of BTC fell.


Meanwhile, CryptoQuant, a cryptocurrency industry data aggregator, revealed data indicating a nett outflow of approximately 4,000 BTC (approximately $163 million) from centralised exchanges.

Net outflows to centralised exchanges are usually interpreted as coins being transferred into safe storage after being deposited, while nett inflows are interpreted as coins being moved out of cold storage to be traded on exchanges.

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According to the weekly netflow, this transition from sale to buying happened only in the last two days.


Chainalysis chief economist Philip Gradwell observed that whales with at least 1,000 BTC accrued since 2017 purchased 34,000 BTC between Tuesday and Thursday, implying that many of these whales thought the bottom had been reached or was near.

Clemente III also noted a massive spike in OTC Bitcoin outflows since Tuesday, which he believes evidences significant buying from institutions or high-net-worth individuals. Morgan Creek Capital Management founder and CEO Mark Yusko shared Clemente III’s tweet, hinting that now is not the time to panic sell:

“Remember before you hit the panic sell button, there is always a buyer on the other side… ask yourself, what do they know that I might not…?”

Moskovski Capital chief investment officer Lex Moskovski also believes many investors are now buying, tweeting: “$5.28B of stablecoins were deposited to exchanges in 24h. This is absolute ATH. Even bigger than pre-Tesla announcement move. Lots of people bought the dip.”

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In a podcast interview this week with Scott Melker, alias the Wolf Of All Streets, Binance creator Changpeng Zhao noted recently surging stablecoin inflows alongside BTC and various ERC-20 tokens. Zhao, on the other hand, made no mention of Ether (ETH) inflows.

According to Arash Ghaemi, director of strategy at digital asset manager Two Prime, while Binance saw the largest BTC inflows ever, ETH outflows were increasing at a similar pace. He came to the conclusion that “people are rotating out of BTC and into ETH, which is why ETH/BTC held up during the pullback.”

Crypto trader Cuban also noted the mass ETH outflow, with $1.3 billion in digital assets leaving centralized exchanges over a five-hour period on Wednesday.

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