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Bitcoin (BTC) outflow from exchanges continues amid the rocketing popularity of spot ETFs in the U.S. Meanwhile, the BRC-20 euphoria lost its traction by mid-March 2024.
<h2 id="bitcoin-btc-fees-lost-33-key-reason">Bitcoin (BTC) fees lost 33%: Key reason</h2>
Bitcoin (BTC), the largest blockchain network, sees its aggregated transaction fees plunging by 33.1% in the last days. Such estimation was shared by blockchain data analytics platform IntoTheBlock in its latest weekly <a href="https://medium.com/intotheblock/cryptos-growing-leverage-flashes-an-early-warning-sign-f9c39981577b" rel="noopener noreferrer nofollow">newsletter</a>.
<blockquote>
 In this week's newsletter we focus on the signs of greed developing in crypto markets. We evaluate the amount of leverage in crypto &amp; analyze the consequences it may bring to investors 👇<a href="https://t.co/8X8vEyqUG7" rel="noopener noreferrer nofollow">https://t.co/8X8vEyqUG7</a>— IntoTheBlock (@intotheblock) <a href="https://twitter.com/intotheblock/status/1768903709558284552?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 16, 2024</a>
</blockquote>
Bitcoin (BTC) fees witnessed a significant plunge due to decreasing activity of BRC-20 tokens or Bitcoin Ordinals. Compared to NFTs in programmable blockchains, these extremely cost-ineffective tokens contributed to a BTC fees upsurge in Q3, 2023.
Meanwhile, $700 million worth of BTC was withdrawn from CEXes as spot ETFs in the U.S. continue setting records. As of March 16, 2024, they accumulated over $12 billion in liquidity from institutional investors.
Fees on Ethereum (ETH), the second-largest blockchain, set a yearly high for the second consecutive week, with the Uniswap (UNI) exchange leading in terms of gas consumption.
However, the outflow of ETH from exchanges — which is a major indicator of bullish sentiment — is lagging behind that of the Bitcoin (BTC) network.
<h2 id="crypto-correction-coming-indicators-by-intotheblock">Crypto correction coming: Indicators by IntoTheBlock</h2>
Also, the analysts shared a number of very alarming signals for Bitcoin (BTC) and altcoins holders. Markets might be overheated as funding rates on derivatives exchanges jumped to multi-month highs.
Funding rates on Binance and Bybit reached levels of 0.06% and 0.09%, respectively. The APY rates on stablecoin-based investing products also increased, which signals about overheated markets as well.
The dynamics of DeFi lends are sending similar messages: Aave Finance (AAVE) increased its debt ratio by 114% in the last year.

Bitcoin (BTC) Fees Down by 33%, Here's Why

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