Total Bitcoin exchange flows at multi-year low as interest in BTC remains low

Data shows that overall Bitcoin inflows and outflows on exchanges have declined in recent weeks as overall 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 fallen to levels not seen since the end of 2020.

The “Exchange Inflow” is an indicator that measures the total amount of Bitcoin currently deposited into the wallets of all centralized exchanges. The “outflow” is just the opposite metric; it tells us the number of coins being extracted from the exchanges right now.

These two indicators combined show the total activity taking place in the exchanges by BTC investors at the moment.

Now, here’s a chart showing the trend of Bitcoin exchange inflows and outflows (both 30-day moving average versions) over the past 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 graph above, Bitcoin exchange inflows and outflows have shown cyclical behavior in recent years.

During previous bull runs, they have generally risen sharply, but as the rally has slowed and a bearish trend has taken over, overall flows have plunged.

The combined exchange flows also followed this trend for the last rally that took place late last year. However, a couple of months ago they observed an unexpected significant increase due to the LUNA and Terra USD crash.

Since what these indicators are really measuring is the activity taking place in centralized exchanges, it makes sense that market-wide panic would also trigger spikes in them as investors rush to make their moves.

But the spike did not last long, the amounts moving in and out of central offices fell again. and now they have a value not seen since late 2020.

The report notes that these multi-year declines suggest that there is a persistent general lack of speculative interest in Bitcoin among investors at the moment.

BTC price

At the time of writing, Bitcoin’s price is hovering 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 showing 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