An important metric to judge the market sentiment of Bitcoin is the outflow on exchanges. When there is a net positive outflow (outflow-inflow), we can be assured that there is more buying than selling. And considering that BTC on exchanges is 28% less than last year, the market sentiment is positive. Yes, there was a price crash, but the strong hands continue to accumulate while paper hands are selling at a loss.
Exchange data
Even though the prices have crashed, the outflows continue. In June 2020, the total number of BTC in centralized exchanges was 2.79 million, and now the number is 1.99 million. That means even though prices have increased in the last year, the demand has not gone down. And considering that Bitcoin is available at basically 50% off as compared to a month back, people have continued to buy.
The drop in the number of Bitcoin in exchanges also shows that people are planning to hold them for the long term. Do note that this is not the lowest count of BTC on exchanges. On April 20, about 1.82 million BTC were present on exchanges which is the lowest ever. So, we have seen a rise in this number after the crash.
Among all exchanges, Coinbase and Binance lead the pack with $636,835 and $341,722 Bitcoins, respectively. Many other major platforms also have a significant amount of BTCs in their reserves. In the last month, Coinbase saw over 3.5k outflow in Bitcoin last month. On the other hand, we have Huobi that saw over 23k BTCs leave their exchange.
A positive data
When you see red candles, don’t panic; just zoom out the chart and see where we are at as compared to last year or maybe 2 years. After taking a look at the bigger picture, you will know why BTC enthusiasts always emphasize greatly on holding their coins through thick and thin. I still believe that we have power left in the bull run, and if prices increase suddenly, people will FOMO in, and we will see a huge bull run again. People wanted BTC at $60k but not at $30k; I don’t understand who doesn’t like 50% off. I am sure you don’t want to be that person.
What are your thoughts on the net positive Bitcoin outflow on exchanges in the last year? And are you still bullish on Bitcoin? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.
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