Cross-chain data shows that monthly Bitcoin outflows have recently reached values that have only been seen a few times before in the entire cryptocurrency history.
Bitcoin outflows are now 96.2k BTC per month
According to the latest weekly report from glassA historically large amount of BTC has exited all exchange wallets recently.
The relevant pointer here is “net change of exchange center“which tells us about the net amount of bitcoin going out or entering the wallets of all exchanges. The value of the metric is calculated simply by taking the difference between the outflows and the inflows.
When the index value is positive, it means that inflows dominate streams At the moment, a net amount of currency is moving on the exchanges. This trend can be bearish for the price of cryptocurrency as investors usually deposit their cryptocurrency on exchanges for selling purposes.
On the other hand, positive metric values indicate that there is a net amount of Bitcoin coming out of exchange wallets at the moment. This type of trend, when continued, may prove bullish for the price of the currency as it can be an indication that investors are accumulating at the moment.
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The chart below shows the trend in net bitcoin exchange position change over the history of the cryptocurrency:
Looks like the value of the metric has been highly negative recently | Source: Glassnode's The Week Onchain - Week 14, 2022
As you can see in the above chart, the net change in bitcoin exchange position has a deep red value at the moment. Over the past month, there has been a net inflow of about 96.2 thousand bitcoins.
Such a high value of the monthly flow has been recorded several times in the history of the cryptocurrency.
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Also, looking at the long-term trend, it appears that inflows have overshadowed the outflows for most of the currency’s history, prior to the advent of March 2020 and the trend reversed.
This shift to more market outflows is still going on, which means the market is still accumulating. This could be very bullish for the price in the long-term.
At the time of writing this report, Bitcoin price It is floating around $46.7K, down 2% in the past seven days. Over the past month, the cryptocurrency has gained 20% in value.
Now, here is a chart showing the trend in the currency price over the past 5 days.
The price of BTC seems to have mostly moved sideways over the past few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com