Think of crypto outflows like Santa packing his sleigh to drop presents at your house. The more gifts thrown out of the workshop and into his sleigh, the happier you should be because it means more goodies for you.
The image above shows Ethereum’s ($ETH.X) aggregated outflow volume from eighteen of the largest (by confirmed volume) crypto exchanges. Since July 3rd, there has been a massive spike in Ethereum leaving those exchanges.
In the last 24 hours, there has been a 55.5% spike in outflows. Over the previous seven days, that number is 66%, and it’s a whopping 86% for the past thirty days.
Large blocks between $100k and $250k of Ethereum have moved, indicating a high probability that those outflows are from the exchange’s OTC (over-the-counter) trading desks – which is most often institutional volume. This movement is interpreted as bullish because there’s less supply on the exchange, showing that ‘big money’ is hodling.
But it could also just be large chunks of Ethereum being moved from the same exchange’s wallet to another of its wallets – it is hard to tell. But the odds that all those outflows are just a shifting of intra-exchange wallets is low. No way to quantify that opinion, but that’s why it’s an opinion. 🚀