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Bitcoin outflows continue despite price correction

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TL;DR Breakdown:

  • Bitcoin outflows soared to over $10 billion within the last seven days, not minding the recent market crash. 
  • The exchanges’ balance has also dropped to a three-year low. 

Bitcoin sentiments suddenly changed last Tuesday amid the flash correction in price from over $52,000 to below $45,000. It currently seems the BTC market is down to the bearish/dip state. Regardless of the drop, however, Bitcoin outflows don’t look any different than it was prior to the flash crash last week. 

On-chain analytics platform Glassnode confirmed this in a tweet today, which suggests more investors are accumulating and HODLing. This trend is considered to be healthy to keep BTC on the uptrend.

Over $10 billion in Bitcoin outflows

Within the past seven days, about $10.8 billion in Bitcoin were transferred from exchanges to external wallets. Bitcoin outflows last week yielded a negative net flow of -$1.2 billion, which means there were more outflows than inflows ($9.6 billion) for these times. Ether (ETH) also recorded a negative net flow of -$545.4 million, per Glassnode.

This trend somewhat indicates that investors are still positive on the future price of Bitcoin regardless of the recent price correction, mostly driven by massive liquidation on the derivative market. As such, more people are accumulating and moving their coins off centralized exchanges to external wallets, probably for HODLing.

Evidently, BTC balance on exchanges has been steadily decreasing, which coincides with the Bitcoin outflows record.

Exchange balance at 3-year low

The analytics platform also shared that the Bitcoin balance on all exchanges has reached another three-year low of 2.47 million BTC.

As more BTC leaves exchanges, there will be less supply for institutions and retail investors to buy, which translates to scarcity. The impact on price might not be felt immediately; however, it’s a bullish metric to watch, and it also indicates the presence of market demand and interest in the largest digital currency. During the time of writing, BTC was trading at $44,458 on CoinMarketCap.

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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