The Bitcoin inflow in exchanges gives a pretty clear idea of the market sentiment both over a short and a long time period. In the case of this bull run, the case is similar as the inflow in exchanges has been net negative since July 2021. This metric considers all the exchanges where BTC trades. In the case of the top 4 exchanges, namely Binance, Bitfinex, Bittrex, and FTX, there have been net positive inflows.
Bitcoin supply in exchanges
These 4 exchanges saw a net inflow of around 207k Bitcoins, and during this same period, the net outflow was around 253k Bitcoin from all other exchanges combined. The most inflows came to FTX, where it has tripled the amount of BTC it had to 103.2k. On the other hand, in the case of Huobi, the number has fallen drastically. It now has just 6% or 12.3k Bitcoins compared to the holdings in July 2021.
Net outflows mean that the demand for Bitcoin is still on the rise. Yes, there have been ups and downs in these past 9 months, but all in all, it is a bullish sign. Glassnode reports that a reason for the reduced inflows could be the trading market moving from spot to derivatives trading to reduce the risk.
The bull market is still on
In the current scenario where the net inflows are less than outflows, it shows that more investors are holding on to their coins. The average price of BTC on-chain is $24,100, which shows that most long-term investors are in profit. In the case of short-term holders, the average price of coins is around $46,400, which shows they are at a loss but not by much.
Unless Bitcoin breaks the $30k price level, we can say that the bull market is intact. At the $38k level, things are not very bullish but not super bearish either. Yes, there is fear in the market due to the sharp correction from $45k, but rallies also occur that way. All in all, the bull market is intact, and there is no point in calling these short-term corrections a bear market.
What are your thoughts as Bitcoin inflow in exchanges has been net negative since July 2021? And do you think this shows we are in a bull market? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.