As Bitcoin once again breaks past the $51k mark, on-chain data suggests more than 20k BTC exited exchanges before this price move.

Bitcoin Netflows Say Around 20k BTC Flowed Out Of All Exchanges Yesterday

As pointed out by a CryptoQuant post, netflows amounted to 20k BTC exiting exchanges yesterday, the largest spike since September.

The “all exchanges netflow” is an on-chain indicator that measures the net amount of Bitcoin going into or out of wallets of all exchanges. The metric’s value is calculated by simply taking the difference between the inflows and the outflows.

When the indicator assumes positive values, it means the inflows are currently overwhelming the outflows, and a net amount of coins is entering exchange wallets. Investors usually send their crypto to exchanges for withdrawing to fiat or for purchasing altcoins. So, if such netflows persist, the outcome could be bearish for the price of BTC.

On the other hand, negative netflows appear when more Bitcoin is entering exchanges than the amount going out. Prolonged downward spikes of the indicator can be bullish for the crypto as they may mean holders are in a state of accumulation.

Related Reading | Growth Of Bitcoin ETFs & Other Instruments Doesn’t Support Supply Shock Narrative

Now, here is a chart that shows the trend in the BTC netflows over the past year:

Bitcoin Netflows

Looks like the indicator has showed negative values recently | Source: CryptoQuant

As you can see in the above graph, the Bitcoin netflow had a huge negative spike yesterday, measuring more than 20k BTC.

This value of the netflow has been…

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