- The average outflow of bitcoin exchange is -7,500 BTC in 14 days, and the volume of its withdrawal is the highest since the 2022-2023 cycle.
- The long-term confidence and the weak pressure to enter short-term sales can be interpreted by the fact that investors keep selling BTC out of exchanges despite new all-time highs.
- Regular outflows and constrained exchange supply show a maturity stage of the market where accumulation is taking over the speculative activity of long-term holders.
Netflows of Bitcoin Exchanges hit a 3-year bottom, which indicates that owners are shifting coins off exchanges at a greater pace. This is an indication that short-term selling pressure is declining as long-term holders retain solid trust in the value of Bitcoin moving forward.
Outflows Reach the Largest Level Since 2022–2023
Data shared by OnChainSchool shows that the 14-day Simple Moving Average (SMA) of Bitcoin exchange netflows reveals an average outflow of around –7,500 BTC. This marks the largest withdrawal volume since the 2022–2023 cycle, the only period exceeding the current magnitude.
The data indicates that fewer coins are being sent to exchanges for potential liquidation, a sign that holders prefer to store assets off-exchange. Such consistent outflows often occur when investors favor self-custody, viewing it as a safeguard during market uncertainty or high volatility.
Moreover, the decrease in exchange-held balances reduces available supply for immediate trading. This environment can lead to a tighter market structure, where demand changes have a stronger effect on price direction.
Investor Behavior Signals Long-Term Confidence
These withdrawals are noteworthy timing-wise because Bitcoin has hit a fresh all-time high not too long ago. Even with these elevated prices, the market participants continue to move their assets out of exchanges rather than position for profits. This behavior indicates they expect Bitcoin to remain strong and be a good long-term investment.
According to OnChainSchool’s post , the consistency of these outflows demonstrates that investors remain unfazed by short-term price fluctuations. They appear more focused on long-term holding strategies rather than trading reactions.
This shift toward long-term storage typically characterizes mature market phases, where speculative behavior gives way to accumulation by stronger hands. It also supports the notion that market participants expect further stability and growth within the current price structure.
Reduced Selling Pressure Reinforces Market Stability
As exchange netflows continue to decline, selling pressure across major platforms appears to be easing. Lower inflows to exchanges generally correspond with fewer sell orders, which can contribute to steadier price movements.
This trend also represents an emerging mindset for investors in the larger cryptocurrency market. As institutions become more active participants and long-term holders remain dominant on supply, the distribution characteristics of Bitcoin are becoming less volatile.
Overall, Bitcoin Exchange Netflows reaching a 3-year low illustrates a market characterized by conviction, accumulation, and reduced speculative turnover—factors that continue to define the present stage of Bitcoin’s growth cycle.
