On-chain data shows the Bitcoin monthly outflows have recently reached values only seen a few times before in the crypto’s entire history.
Bitcoin Exchange Outflows Now Have A Value Of 96.2k BTC Per Month
According to the latest weekly report from Glassnode, a historically high amount of BTC has exited all exchange wallets recently.
The relevant indicator here is the “exchange net position change,” which tells us the net amount of Bitcoin exiting or entering wallets of all exchanges. The metric’s value is simply calculated by taking the difference between the outflows and the inflows.
When the value of the indicator is positive, it means inflows are dominating the outflows right now, and a net amount of coins is moving into exchanges. Such a trend can be bearish for the price of the crypto as investors usually deposit their crypto to exchanges for selling purposes.
On the other hand, positive values of the metric imply there is a net amount of Bitcoin exiting exchange wallets at the moment. This kind of trend, when sustained, may prove to be bullish for the price of the coin as it can be an indication that investors are accumulating right now.
Related Reading | Bitcoin Bullish Signal: 30MA STH-SOPR Returns Above 1 After 4 Months
The below chart shows the trend in the Bitcoin exchange net position change over the history of the crypto:
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 graph, the Bitcoin exchange net position change has a deep red value right now. Over the past month, there has been a net outflow amounting to around 96.2k BTC.
Such a high monthly outflow value has only been recorded a few times over the course of the history of the crypto.
Related Reading | Don’t Look Down: Bitcoin Ready To Re-Test Support Zone At $44K?
Also, looking at the more long-term trend, it seems like inflows have overwhelmed outflows for much of the history of the coin, before March 2020 came around and the trend flipped.
This turn to more outflows in the market is yet continuing, which means the market is still accumulating. This could be quite bullish for the price in the long term.
BTC Price
At the time of writing, Bitcoin’s price floats around $46.7k, down 2% in the last seven days. Over the past month, the crypto has gained 20% in value.
Now, here is a chart that shows the trend in the price of the coin over the last five 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
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