[ad_1]
Data shows that Bitcoin saw the largest monthly outflow from the exchange in history this June as 151k BTC flew from a centralized wallet.
Bitcoin Netflow left the 151k BTC exchange in June
According to a recent weekly report from Glasnod, BTC observed the largest monthly outflow from the exchange in June.
“Exchange Net Position Change” is an indicator that measures the net amount of bitcoin entering or leaving the wallet of all centralized exchanges.
The value of the metric is simply calculated by subtracting the total outflow from the total flow. So, when the value of the index is positive, it means there is more flow at the moment.
Such a trend can be bad for the price of BTC because investors usually deposit their coins in exchange for the purpose of selling.
On the other hand, a negative value of the index indicates that a net amount of currency is coming out of the exchange wallet at the moment.
Related Reading | Crypto volume on Indian exchanges has declined by more than 70% following the 1% TDS rule
Such a trend, if prolonged, could prove bullish for the price of crypto as it could be a sign of accumulation from investors.
Now, here is a chart that shows the trend of Bitcoin exchange net position changes over the last few years:
The value of the indicator seems to have been deep red in recent weeks | Source: Glassnode's The Week Onchain - Week 27, 2022
As you can see in the graph above, the value of Bitcoin Netflow seems to be extremely negative in recent times, suggesting that a huge amount of coins have gone out of exchange.
In fact, last month, a record 151k BTC flew from the exchange wallet. Just before this maximum outflow, about 73k BTC was accumulated during the LUNA crash.
Related Reading | 3 lessons from Oslo Freedom Forum: Bitcoin as a tool – Malar, Rome, Fang
In a bearish period like now, the outflow in June is in stark contrast to the May-June 2021 mini beer where the monthly outflow was at 150k BTC.
There may be several reasons for this trend. First, the Bitcoin market is now moving towards a handling mentality.
And second, recent events have involved a lot of exchanges that have withdrawn from their platforms which has led to a renewed focus on crypto self-preservation.
Many investors are currently forced to stop exchanging their currencies due to this fear and uncertainty, which would explain the unusually high outflows.
BTC price
At the time of writing, the price of Bitcoin is about $ 19.4k, down 7% from last week. The chart below shows the price trend of crypto over the last five days.
Looks like Bitcoin is still consolidating | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com
