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 Bitcoin per month
The latest Weekly Report from Glassnode shows that a record-breaking amount of BTC have exited exchange wallets in recent weeks.
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.
Positive values indicate that there are more inflows than outflows at the moment and that more coins are moving to exchanges. This can have a negative impact on the cryptocurrency price as crypto investors typically deposit their coins to exchanges in order to sell.
Positive values for the metric indicate that there are currently a large number of Bitcoins leaving exchange wallets. If this trend continues, it could be a bullish sign for the cryptocurrency’s price as it may indicate that investors are investing right now.
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Below is a chart that shows how the Bitcoin Exchange net position has changed over time.
It seems like the value for the metric is now very negative. Source: Glassnode's The Week Onchain Week 14 2022| Source: Glassnode's The Week Onchain - Week 14, 2022
You can see that Bitcoin’s net position change is currently very dark. There has been an outflow of 96.2k BTC over the last month.
This high monthly outflow has been seen only a handful of times in the history of crypto.
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If you look at the long-term trends, it appears that inflows seem to have outstripped outflows during much of the history, prior to March 2020 when the trend turned.
This means that the market is still growing. This could have a positive impact on the long-term price.
BTC Prices
At the time of writing, Bitcoin’s price floats around $46.7k, down 2% in the last seven days. In the past month, crypto gained 20%.
Here is a chart showing the trends in coin price over the past five days.
BTC appears to have moved mostly sideways during the past few trading days. Source: BTCUSD TradingView| Source: BTCUSD on TradingView
Unsplash.com's featured image. Charts by TradingView.com. Glassnode.com's charts.