• Bitcoin exchanges have been experiencing net negative BTC flows into their wallets in recent days.
• This shift in sentiment could indicate that the Bitcoin price is about to vault above $30,000.
• Macroeconomic factors like US recession fears and a dovish Fed are underpinning Bitcoin demand as a potential safe haven asset, while its underlying network is also showing signs of strength.
Net Exchange Flows Reversal
Major cryptocurrency exchanges have been experiencing net negative BTC flows into their Bitcoin wallets over the last few days, according to on-chain data presented by crypto analytics firm Glassnode. Flows into exchange wallets had been mostly positive since mid-February and the reversal could be a sign that sentiment in the Bitcoin market is improving.
Warning Sign for Price Increase?
Net exchange flows have a weak correlation to price performance, but some are nonetheless interpreting the recent shift in flows as another warning sign that the Bitcoin price is on the verge of vaulting above $30,000. Bitcoin was last changing hands close to $28,000 on major exchanges, up around 70% on the year.
Macro Tailwinds
Bitcoin analysts have many other arguments as to why they think the BTC price might soon see its next leg higher to take out $30,000. Beginning with macro tailwinds, the main driver of the price rise last month – concerns remain about a possible bank crisis in the US (and globally), which continues to underpin Bitcoin demand as a potential safe haven. Meanwhile, a spate of weaker-than-expected US data releases out so far on the week (the manufacturing and services ISM reports, JOLTs Jobs Data and ADP National Employment figures) have weighed on the US dollar and US yields by pumping bets for a US recession later this year. This has resulted in markets further pulling back their bets for anything further Fed tightening – according to the CME’s Fed Watch Tool, money markets imply just a 44% chance that