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BTC net flow on exchanges hit an 8-month low.
What happened? Analyst company CryptoQuant published data showing the outflow of bitcoins from exchanges. According to the charts, as of May 16, the lowest net flow of BTC on the platforms was recorded for the last 8 months.
What does this data say? The net flow figure is calculated based on the difference between bitcoins coming into the exchange and those withdrawn. A positive value of the index indicates an increase in reserves. For spot markets, a high value usually indicates growing selling pressure.
What events have occurred in the past? On May 10, the largest bitcoin influx to cryptocurrency exchanges since December 2019 was recorded. Investors deposited $1.27 billion worth of bitcoins on the platforms overnight. Most of these funds probably came from the purse of the Luna Foundation Guard (LFG), a nonprofit organization set up to support the Terra ecosystem. On May 10, 28,205.54 BTC was withdrawn from the LFG’s reserve wallet to maintain the UST steblecoin’s peg to the dollar.
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