As Bitcoin Hits a Two-Week High Following a Tentative US Debt Ceiling Deal, Crypto Market Shows Subdued Net Flow, Suggesting Possible Future Volatility
The cryptocurrency market is showing signs of subdued net flow, potentially reticent in the face of impending volatility.
A recent analysis by data analytics firm Glassnode revealed that the realized net gain/loss sent to exchanges has evened out, demonstrating a marginal net flow of $420,000.
Compared to the bull and bear market highs, when net flow peaked at $389 million and $205 million respectively, current currency flows are relatively placid.
This analysis comes at a time when Bitcoin, the main cryptocurrency, gathered to a two-week high of $28,452, mainly attributed to a tentative debt ceiling deal in the US.
After a long stalemate, this deal is aimed at averting an impending financial crisis that could have led the country to default on its massive debts.
Many believe that this recent rise in the price of Bitcoin and the broader crypto market is largely driven by this political development.
Glassnode's analysis potentially suggests a spike in volatility in the near future, although the timing and extent of this potential volatility remains uncertain.
The largest cryptocurrency is currently changing hands at $27,627 on the Bitstamp exchange.
