Bitcoin, Ethereum slide lower as flows to exchanges decline

• Bitcoin and Ethereum are correcting on Tuesday, falling over 2% each.
• Data from OKX and Binance shows a slowdown in retail activity, lower than past bull markets and even the 2019-2020 bear market.
• XRP breaks below the $0.6200 support, trading at $0.6111.

Bitcoin, Ethereum and XRP Updates

• Bitcoin Spot ETFs have seen eight consecutive days of positive flows. Back-to-back entries typically signal sustained institutional demand for the asset. Bitcoin ETFs saw inflows of $61.3 million on Monday, according to data from Farside Investors.
• Ethereum hovers around $2,500 on Tuesday. Ethereum ETFs saw an outflow of $0.8 million on Monday. The altcoin continues to correct, falling off Saturday’s low of $2,524 at the time of writing.
• XRP faces a correction even as Ripple announces provisional approval of a financial license from Dubai. The altcoin is falling below the $0.6200 support level and is trading at $0.6111 at the time of writing.

Chart of the Day: Omni Network (OMNI)

OMNI ended its multi-month downtrend on September 3 when the asset closed above $6.57. The token is likely to extend its 12% decline and sweep liquidity into the Fair Value Gap (FVG) between $7.87 and $8.35. OMNI is currently trading below the 50-day exponential moving average (EMA) as seen on the OMNI/USDT daily chart.

OMNI/USDT daily chart

If OMNI sees a daily candle close above the 50-day EMA at $10.39, it could invalidate the bearish case for the asset.

Market updates

• Crypto exchange flow data from OKX and Binance shows that inflows to centralized exchanges are lower than the previous bull markets and bear market of 2019-20. While lower flows usually mean that there is less selling pressure on assets on exchanges, it also signals a decrease in activity and demand among traders.

Bitcoin Flows to Exchanges

• Toncoin ecosystem tokens, which are listed on Binance, have seen a steep correction in their prices over the past seven days, according to data from Coinmarketcap.com.

Toncoin Ecosystem Tokens

• QCP Capital predicts a rise in Bitcoin price to a high of $78,000 in October.

Industry updates

• On-chain data from Lookonchain shows profit-taking by whale wallet address. If more ETH holders engage in profit taking, it could negatively impact the price of the altcoin.

• Ripple receives a license from the Financial Services Authority (FSA) in Dubai, plans to launch services to firms based in the Emirates.

• Chainalysis chief marketing officer Ian Andrews criticizes Russia for circumventing sanctions by using crypto. Andrews was quoted as saying, “Russia has become an international force using cryptocurrencies for everything from sanctions evasion to ransomware attacks and, most recently, interference and disinformation campaigns targeting the US election,” in a video on the company’s YouTube channel on October 1.