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.
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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.