Bitcoin Exchange Netflow For BitMEX Has Seen A Red Spike Recently
As an analyst in a CryptoQuant Quicktake pointed out, the cryptocurrency exchange BitMEX has recently observed significant withdrawals from the whales.The indicator of interest here is the “exchange netflow,” which tracks the amount of Bitcoin entering or leaving any exchange’s wallets. The metric’s value is calculated by subtracting the outflows from the inflows.
Now, here is a chart that shows the trend in the Bitcoin exchange netflow for the BitMEX platform over the last few months:
The value of the metric appears to have been quite negative in recent days | Source:As displayed in the above graph, the Bitcoin exchange netflow for BitMEX has registered large negative values just recently. The investors have withdrawn about 4,000 BTC (equivalent to $168.3 million at the current exchange rate) from the platform during this net outflow spree. The quant has explained that the price of the cryptocurrency and this metric have followed a specific pattern whenever this trend has occurred. Below is a zoomed-out indicator chart showing the previous instances where negative spikes took form.
The trend in the BitMEX exchange netflow over the last few years | Source:“When a significant volume of Bitcoins is observed leaving BitMEX, one of the leading cryptocurrency trading platforms, it often signals the formation of local bottoms in the price of Bitcoin (BTC),” notes the analyst.
The graph shows that large net withdrawals also occurred on the exchange right before the current rally in the cryptocurrency’s price began in October of last year.
It’s possible that these historical negative spikes in the indicator corresponded to buying from these BitMEX whales, which helped the price bottom out and turned around. Given this historical pattern, the latest net withdrawals may have a similar effect to some degree on the coin. The quant cautions, however, that “it is essential to closely monitor these trends, as large inflows into the exchange can have the opposite effect, potentially leading to a decrease in BTC price.”BTC Price
Bitcoin has erased its recent recovery as the asset’s price has returned to the $42,000 mark now.Looks like the price of the asset has returned to an overall sideways trajectory | Source: