The post Bitcoin Netflow Turns Negative: A Bullish Sign Amid Short-Term Holder Struggles appeared on BitcoinEthereumNews.com.

Since March 10, 2025, the net flow of Bitcoin—the balance between BTC moving into exchanges and those moving out—has turned negative. This means that on average 3,600 more BTC per day are being taken out of exchanges than are being put into them. Analysts often consider this to be a signal that’s bullish—indicative of greater confidence among BTC holders than there is among BTC non-holders in the longer-term prospects for Bitcoin. Yet the market is more complex, and the situation is more delicate, especially for short-term BTC holders. As it now stands, that’s an unenviable group of people. Understanding Netflow: Why Negative is Bullish Netflow gauges the flow of Bitcoin in and out of exchanges. When the flow of Bitcoin to exchanges is increasing, while the flow of Bitcoin to offline storage is not, then the Bitcoin economy is more likely to be in an increasing selling-pressure situation. Gauging netflow is straightforward. You just measure deposits against withdrawals. They have an explicit Bitcoin money supply implication, which is essentially “You cannot sell what you do not have.” The current net outflow of about -3,600 BTC daily is a significant shift from the prior months and quarters. To put things into context, the peak net outflow in this cycle happened back in December 2022, when a whopping 12,100 BTC per day were moving onto exchanges. Ever since then, this net outflow number has dropped quite a bit, and we now find ourselves in a sustained period of negative net outflow. This movement reflects a change in trader psychology. Instead of offloading their BTC, investors seem to be accumulating or at least holding, which is often viewed as a positive precursor for price appreciation. Starting March 10, 2025, the average Netflow (the difference between BTC deposits to exchanges for selling and BTC…

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Filed under: News - @ June 4, 2025 5:28 am