Bitcoin ($BTC), the flagship crypto asset, has recently seen a notable dip in its exchange flows. As per the data from “Axel Adler Jr,” Bitcoin’s flows on centralized crypto exchanges have plunged to the lowest point over the past ten years. The crypto analyst took to social media to share insights into the decline in the exchange flows of Bitcoin.
Bitcoin Witnesses Record Lows in Exchange Flows
Axel Adler Jr points out that Bitcoin’s ($BTC) daily outflows and inflows on centrally controlled exchanges have dipped to only 40,000 $BTC/day. This denotes the lowest spot in up to a decade. In line with the market data, a sheer and sustained plunge has taken place in Bitcoin’s trading volume on diverse platforms.
In this respect, the presently subdued volume is in contrast with the recent price increase. The analyst is of the view that the 7-day, 30-day, as well as 365-day moving averages of Bitcoin also confirm the respective downtrend in the wider flow activity. Adding to this, the volatility bands also indicate the sheer low spot of the present volumes when taking into account the historical context.
Decreased Exchange Flows Could Bring About Huge Market Movement
According to Axel Adler Jr, this development has triggered speculation concerning the broader market sentiment. Formerly, such decreased flows have led to periods of reduced market participation or price rallies. Hence, amid the continuous macroeconomic uncertainty driven by geopolitical tensions, Bitcoin’s current decreased flows may pave the way for a massive market movement, especially while institutions are taking significant interest.
