“The relationship between bitcoin price and flows is pretty apparent. Price rallies were typically accompanied by sizable inflows to exchanges as individuals looked to take profit,” said independent crypto research and analysis firm Delphi Digital in an analysis shared with TNW.
Bitcoin Flowing In and Out ‘Relatively Less’
Folks looking to earn profits off their bitcoin holdings can let out a sigh of relief. As per Delphi Digital’s analysis, there’s been less bitcoin 00 flowing in and out of cryptocurrency exchanges lately; at least compared to figures registered in the month of June and July.
As a matter of fact, the amount of bitcoin deposited by traders on major cryptocurrency exchanges is equal to BTC withdrawn, as per the analysis.
Bitcoin Inflow and Outflow: Q1, Q2, Q3 2019
Recently, research analyst, Elias Simos in association with TokenAnalyst also took to twitter to discuss the idiosyncratic trend. According to him, 2019 Q1 saw the beginning of an accumulation phase as the rate of bitcoin outflows slowly started picking up pace. By Q2 2019, the outflow trend had already peaked. He went on to say:
The flows trend was consistently skewed towards outflows (e.g. buy $BTC, send to cold storage). In March 2019, while price was dormant, net outflows accelerated.
More participants were found to have joined the market momentum as price activity saw a change. At the end of the quarter, the trend reversed as flows swapped from outflows to inflows. To date, in Q3, there is no observable delta between BTC flow rates.
2/ As Q2 kicked in, a regime change took place; net outflows accelerated, while the price trend changed, as market participants jumped on the train.