Bitcoin Total Exchange Flows At Multi-Year Lows As Interest In BTC Remains Low
Data shows the total Bitcoin inflows and outflows on exchanges have gone down in recent weeks as the general interest in the crypto remains low.
Bitcoin Total Exchange Flows Are Now At Multi-Year Lows
According to the latest weekly report from Glassnode, activity on exchanges has dropped to levels not observed since late 2020.
The “exchange inflow” is an indicator that measures the total amount of Bitcoin currently being deposited to wallets of all centralized exchanges. The “outflow” is just the opposite metric; it tells us about the number of coins being withdrawn from exchanges right now.
These two indicators combined showcase the total activity going on in exchanges by the BTC investors at the moment.
Now, here is a chart that shows the trend in the Bitcoin exchange inflows and outflows (both 30-day moving average versions) over the last few years:
Looks like the total flows on exchanges have been quite low in recent days | Source: Glassnode's The Week Onchain - Week 34, 2022
As you can see in the above graph, the Bitcoin exchange inflows and outflows have showed cyclical behavior in the last few years.
During past bull runs, they have generally sharply risen up, but as the rally has winded down and a bearish trend has taken over, the total flows have plunged down.
The combined exchange flows also followed this trend for the latest rally that took place late last year. However, a couple of months back they observed an unexpected significant spike up due to the LUNA and Terra USD crash.
Since what these indicators really measure is the activity going on in centralized exchanges, it makes sense that market-wide panic will also trigger spikes in them as investors rush to make their moves.
But the spike didn’t live for long, the amounts moving in and out of exchanges fell down again. and now they are at a value not seen since late 2020.
The report notes that these multi-year lows suggest that there is a persisting general lack of speculative interest in Bitcoin among investors at the moment.
At the time of writing, Bitcoin’s price floats around $21.5k, down 10% in the last seven days. Over the past month, the crypto has lost 5% in value.
Below is a chart that shows the trend in the price of the coin over the last five days.
The value of the crypto seems to have not shown much movement since the plunge down a few days back | Source: BTCUSD on TradingView
Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, Glassnode.com
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