Bitcoin Monthly Outflows Reach Historically High Value

Keshav Verma

Last Updated: June 11, 2024 11:41 am

3 mins read

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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.

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.

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

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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