Categories: Bitcoin Latest News

How Bitcoin Exchange Outflows Rose In January

January was the largest month for bitcoin exchange outflows since September 2021.

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

As we’ve discussed in previous Daily Dives, March 2020 was a significant catalyst and turning point for bitcoin. We can see that in the behavior of exchange balances which have shown consistent net outflow over the last two years.

The two most recent periods of significant inflows were right before both 2021 bitcoin local price tops. These tops in April and November coincided with the previous month showing net exchange inflows of bitcoin in both March and October.

January was the largest outflow month since September 2021. Keeping an eye on exchange flow dynamics can help us track demand sentiment and when that is fundamentally changing for market participants.

Source: Glassnode

The 90-day cumulative exchange flow has consistently moved with price over the last year. In the chart below, the right-hand side axis is reversed to show how a decreasing net exchange flow correlates with a rising price and vice versa. 

What we’ve seen in January is a turning point in the 90-day cumulative netflow with more bitcoin flowing out of exchanges. This signals increased buying demand over the last month and we’ve seen bitcoin price follow suit over the last few days. This is happening while we’re also seeing accumulation trends in long-term holders and whales over the last few weeks.

Source: Glassnode

Looking at the 30-day change in exchange balances, we’ve seen a strong deceleration over the last two weeks. 

Source: Glassnode

Another way to view exchange volume dynamics is to look at the net exchange flow relative to estimates for adjusted supply. Adjusted supply removes coins that haven’t moved in seven years which is an assumption to account for Satoshi’s coins and lost coins. Current adjusted supply is approximately 15.58 million bitcoin, 82.2% of the circulating supply. 

Read More

January was the largest month for bitcoin exchange outflows since September 2021.

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

As we’ve discussed in previous Daily Dives, March 2020 was a significant catalyst and turning point for bitcoin. We can see that in the behavior of exchange balances which have shown consistent net outflow over the last two years.

The two most recent periods of significant inflows were right before both 2021 bitcoin local price tops. These tops in April and November coincided with the previous month showing net exchange inflows of bitcoin in both March and October.

January was the largest outflow month since September 2021. Keeping an eye on exchange flow dynamics can help us track demand sentiment and when that is fundamentally changing for market participants.

Source: Glassnode

The 90-day cumulative exchange flow has consistently moved with price over the last year. In the chart below, the right-hand side axis is reversed to show how a decreasing net exchange flow correlates with a rising price and vice versa. 

What we’ve seen in January is a turning point in the 90-day cumulative netflow with more bitcoin flowing out of exchanges. This signals increased buying demand over the last month and we’ve seen bitcoin price follow suit over the last few days. This is happening while we’re also seeing accumulation trends in long-term holders and whales over the last few weeks.

Source: Glassnode

Looking at the 30-day change in exchange balances, we’ve seen a strong deceleration over the last two weeks. 

Source: Glassnode

Another way to view exchange volume dynamics is to look at the net exchange flow relative to estimates for adjusted supply. Adjusted supply removes coins that haven’t moved in seven years which is an assumption to account for Satoshi’s coins and lost coins. Current adjusted supply is approximately 15.58 million bitcoin, 82.2% of the circulating supply. 

Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides

Recent Posts

Bitcoin Price Likely To Fluctuate Between $100,000 And $110,000 Until FOMC Meeting, Says Analyst

After a flash crash to $89,256 earlier this month, Bitcoin (BTC) made a swift recovery,…

2 hours ago

Trump Signs Executive Order to Explore a U.S. Strategic Bitcoin Reserve

President Donald Trump has signed a Executive Order titled “Strengthening American Leadership in Digital Financial…

3 hours ago

Bitcoin Liquidity Blocks Tell A Story: Here’s Why $96,000-$111,000 Is Most Important

Although Bitcoin price action is still holding above the $100,000 price level, the past 24…

5 hours ago

Bitcoin Trade Volume Wednesday Was One of the Largest Ever

Bitcoin continues to trade at record levels. According to checkonchain data, Wednesday's $130 billion bitcoin…

7 hours ago

Bitcoin Rises to $106K as Trump Slated to Call Bukele, El Salvador’s Crypto-Friendly President

Bitcoin (BTC) surged past $106,000 on Thursday morning in the U.S. on reports that U.S.…

8 hours ago

Best Crypto Presales to Buy Now for 100x — Larry Fink’s $700K Bitcoin Prediction

BlackRock, one of the biggest investment companies in the world, has given crypto enthusiasts a…

8 hours ago