Bitcoin Outflows Spike As 30k BTC Exits Exchanges, Reserve Plunges Down

Bitcoin outflows have shown a spike amounting to 30k BTC today, leading to a plunge in the all exchanges reserve. Bitcoin Netflow Shows Deep Negative Spike As 30k BTC Exits Exchanges As pointed out by an analyst in a CryptoQuant post, the BTC exchange netflow showed a large negative spike earlier today. The “outflow” is a measure of the total amount of Bitcoin exiting wallets of all exchanges. Similarly, the number of coins being deposited to exchanges is the “inflow.” The difference between the inflow and the outflow is called the netflow. This indicator tells us the net amount of coins moving into or out of exchanges. When the value of this indicator is negative, it means outflows are currently overwhelming the inflows and a net amount of Bitcoin is exiting exchanges. Such a trend, when prolonged, can be bullish for the price of the crypto as it may be a sign of accumulation. Related Reading | USDC Inflow Spikes Up, Will It Act As Dry Powder For New Bitcoin Rally? On the other hand, a positive netflow shows that a net amount of coins are entering exchange wallets at the moment. Since investors usually deposit to exchanges for selling purposes, this trend can be bearish for the coin. Now, here is a chart that shows the trend in the Bitcoin netflow over the past couple of weeks: Looks like the indicator showed a large downward spike recently | Source: CryptoQuant As you can see in the above gr...