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Breaking News: Forfeited Bitcoin Linked To Samourai Case Not Sold, Confirms White House Crypto Advisor

Bitcoin Exchange Netflows Are Negative, Could A Bull Run Be Coming?

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 10:10 am
3 mins read
Bitcoin Bull

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Bitcoin shows negative exchange netflows on CryptoQuant charts recently, an indicator that a bull run might be coming soon.

Negative Exchange Netflows

Bitcoin exchange netflow is an indicator that highlights whether more BTC is moving into exchanges than out.

A more technical definition of the term is that it’s the difference of the exchange inflows and outflows.

Exchange Netflow = Inflow – Outflow

The exchange inflow is just the amount of BTC transferred to exchanges, while outflow is the opposite.

Here is a chart that shows the current trend in Bitcoin exchange netflow with the BTC price:

Bitcoin netflow

BTC netflow shows negative behavior recently | Source: CryptoQuant

As is clear from the above chart, the recent trend of the Bitcoin exchange netflow has been negative. This means that more people are withdrawing their BTC from exchanges compared to those who are sending the coin to exchanges.

On closer inspection of the chart, another thing becomes apparent. Negative netflow seems to precede an increase in the price of the cryptocurrency.

Before the 2021 bull run, the netflow was deeply negative for a prolonged period of time. It was followed by alternating negative and positive neftlows that resulted in the different peaks to form.

Related Reading | Bitcoin Daily Trading Volume Nosedives To Lowest Of 2021

While the recent crash was accompanied by a deeply positive netflow. And it makes sense, as a negative neflow means people are selling off their Bitcoin investments in exchanges.

Now, following the pattern of the chart, the current negative netflow might also result in an increase in the price of BTC.

However, the netflow isn’t as negative as at the start of the year so if the price is going to rise, it won’t be as drastic as that bull run.

Bitcoin Price

BTC’s price is around $34k right now. It’s value is down 0.52% in the past 7 days. Here is a chart showing the trend over the past 6 months:

Bitcoin Price

Bitcoin shows an almost flat line | Source: BTCUSD on TradingView

BTC has shown stagnation in the past couple of days as its value is stuck near the $34k mark. Market volatility is the lowest since the bull run as per some indicators.

It’s unclear when Bitcoin will be able to break out of this freeze zone, and which direction it will go in.

However, as mentioned before, a negative netflow might mean the price is going to rise soon. If a bull run is coming as it indicates, BTC might be leaving up from this flatline.

Related Reading | China Banned Bitcoin Mining. What Happens To Small Hydropower Stations Now?

A notable thing is that while a bull run might be soon, it’s possible the rise could be only short-term. The earlier chart shows that not too long before the crash, the netflow was negative.

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Keshav Verma
Keshav Verma

Keshav Verma

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

Read more

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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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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