Bitrabo Editorial
Data on the blockchain indicates that Bitcoin whales may be taking advantage of the market dip, as major withdrawals have been witnessed on spot exchanges – the largest since 2024.
Bitcoin Exchange Netflow Shows Significant Redirection
As highlighted by an analyst in a recent CryptoQuant Quicktake post, there has been a substantial outflow of coins from spot exchanges. The key indicator here is the “exchange netflow,” which monitors the net movement of Bitcoin in and out of wallets connected to centralized exchanges.
When this metric is negative, it signifies that more Bitcoin is leaving exchanges than entering, suggesting a trend of long-term holdings by investors, which could be bullish for BTC.
In contrast, a positive value indicates net deposits into exchanges. The impact of such a trend varies based on the type of exchange – spot or derivatives.
For spot exchanges, inflows may signal bearish behavior by investors looking to sell, while derivatives inflows imply increased volatility as traders open more risk positions.
The chart below illustrates the trend in Bitcoin exchange netflow for spot exchanges since the beginning of the year:
Amid the recent price plunge, the net outflow from spot exchanges spiked significantly, with over 46,000 BTC worth over $2.6 billion exiting these platforms – potentially indicating accumulation by large investors anticipating a price increase.
Moreover, derivatives exchanges have also experienced notable negative spikes in netflow, suggesting whales are reducing risk by transferring coins off these platforms, potentially for long-term holding.
Bitcoin Price Movement
Currently, Bitcoin is trading around $57,200, reflecting a nearly 9% decline over the past week.