According to data from the on-chain analytics platform CryptoQuant, the Bitcoin exchange netflow has dramatically dropped to -12,570 BTC or so as of Oct. 27. The number is among the top daily outflows this month.
Net Bitcoin outflows from exchanges recently soared to over $1 billion in just the last 24 hours. On a net basis, over $1 billion of BTC has been withdrawn from exchanges in the last 24 hours.
A CryptoQuant chart indicates that the Bitcoin exchange netflow has dramatically dropped to -12,570 BTC or so (as of October 27). It's one of the biggest daily outflows this month.
The latest net outflow (if the BTC price is around $80,487) is equivalent to around $1.01 billion.
The chart from CryptoQuant points out that exchange activity has dramatically reversed. Just a day ago, it witnessed a positive net flow of over 7,000 BTC before this metric plummeted into a deep negative zone.
This drop on October 27 is one of the biggest spikes in Bitcoin exchange outflow since October 6, when almost 15,000 BTC were withdrawn from exchanges (on a net basis).
Note that the latest number may not be final, as the data is still incomplete. So the daily number may change.
Is there an upcoming BTC supply shock?
Generally, mass Bitcoin exchange outflows are seen as potentially bullish. That is because it means investors are withdrawing their funds from exchanges.
When Bitcoin is withdrawn from exchanges, it may go to private wallets, institutional custodians, or long-term storage.
This may decrease the immediately accessible supply of BTC for trading, reducing the potential for selling pressure.
On the other hand, mass inflows of BTC to exchanges often signal a potential spike in selling pressure. It means investors are sending their coins to exchanges for a potential sell-off as they transfer their coins to trading platforms.
The recent event is interesting amid Bitcoin's recent weak performance.
According to a chart from CryptoQuant, the price of Bitcoin was hovering around $80,487 (as of October 27). The flagship cryptocurrency is trying to recover its momentum after a recent drop to the psychological level of $80,000.
