On-chain data shows exchanges have seen a massive amount of Bitcoin outflows during the past day, a sign that could be bullish for BTC’s price.
Bitcoin Exchange Netflow Has Just Seen A Large Negative Spike
In a new post on X, the market intelligence platform IntoTheBlock has talked about the latest trend in the Bitcoin Exchange Netflow. The “Exchange Netflow” refers to an on-chain indicator that keeps track of the net amount of the asset that’s moving into or out of the wallets associated with centralized exchanges.
When the value of this metric is positive, it means the investors are depositing a net number of coins into these platforms. As one of the main reasons why holders transfer to exchanges is for selling-related purposes, this kind of trend can have a bearish effect on the cryptocurrency.
On the other hand, the indicator being under the zero mark suggests the outflows related to the exchanges are outweighing the inflows. Such a trend can be a sign that the investors are accumulating, which can naturally carry a bullish implication for the asset’s value.
Now, here is the chart shared by the analytics firm that shows the trend in the Bitcoin Exchange Netflow over the past week:
The value of the metric appears to have plunged into the red zone recently | Source: IntoTheBlock on X
As is visible in the above graph, the Bitcoin Exchange Netflow has been inside the negative territory for the last few days, implying that the investors have been making net withdrawals from the exchanges.
Yesterday saw an especially large red spike in the indicator, with more than $467 million in the cryptocurrency leaving the wallets connected to these central entities.
The net outflows have come as Bitcoin has been making a push toward recovery. The fact that the investors haven’t been participating in net selling and are instead accumulating could naturally be an optimistic sign for the rally’s sustainability.
The Exchange Netflow could be to keep an eye on in the coming days, however, as things can rapidly change in the market, especially if some kind of bearish news drops.
The trend in the Exchange Netflow isn’t the only bullish signal that Bitcoin has witnessed recently. As the on-chain analytics firm Glassnode has revealed in an X post, the total number of Bitcoin addresses holding between 1,000 and 10,000 BTC has witnessed a rise recently.
The trend in the address count of the BTC whales over the past twelve months | Source: Glassnode on X
Investors who have a balance lying in this range are popularly known as the whales. As shown in the chart, these humongous entities have seen their population grown from 1,944 in early March to 2,014 today.
“Whale accumulation is picking up at a pace last seen in April 2024 – signaling renewed confidence from large holders,” explains the analytics firm.
BTC Price
Bitcoin has seen its recovery rally slow down during the past day as its price is still trading around $85,000.
The trend in the BTC price during the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
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