Data: Analysis of the total outflow and inflow of Bitcoin in all exchanges/mining pools

Special thanks to Cryptoquant.com for providing real-time on-chain and market data support for this article.

1. Total Bitcoin outflow and inflow per hour

Figure 1 shows the total outflow and inflow of Bitcoin in all exchanges and mining pools in 2020. The flow of funds in trading wallets can be used to evaluate investors' trading behavior. The above chart includes statistics from the following exchanges: Binance, BitMEX, Huobi Global, FTX, Bybit, Gemini, Bitfinex, Bittrex, OKEx, Kraken, Bithumb, Coinone, Gopax, Korbit, Bitflyer, Gate.io, Coinbase Pro, Poloniex and KuCoin.

The total amount of bitcoin inflows and outflows from currency exchanges has remained stable this year, suggesting that investors keen to profit from bitcoin price fluctuations have maintained a relatively calm trading mentality, especially compared to March, when the price of bitcoin plummeted to below $6,000.

2. Daily Bitcoin Inflow and Outflow

As shown in Figure 2, Bitcoin has seen significant net inflows when there have been large price swings, both up and down. On the one hand, when bear market sentiment really started to pick up in March 2020, investors wanted to sell their Bitcoin as soon as possible, so they began to sell on exchanges. Despite a nearly 500% increase in total inflows and a price increase from $25,000 to $145,000, the price of Bitcoin plummeted to below $5,000. On the other hand, price increases are usually accompanied by a large influx of funds as investors look to take profits. For example, in the second quarter of 2019, despite increasing total inflows, Bitcoin's price achieved its largest increase since 2019, rising from less than $5,000 to $12,000.

Comparing Figure 2 and Figure 3, we can see that the trend of the total daily outflow and inflow of Bitcoin is very similar. This year, the correlation coefficient between the two has reached 0.95, which means that the trends of the two variables are exactly the same. In particular, when the price of Bitcoin plummets, its total outflow is higher than the total inflow, and vice versa.

3. Total daily inflow of Bitcoin

Figure 4 shows the top five exchanges with the largest Bitcoin inflows in 2020. For most of this year, Binance has been the exchange with the largest total Bitcoin inflows, followed by Coinbase Pro, Huobi, Kraken, and Bithumb. Except for the large-scale transfer of Bitcoin in March 2020, Binance recorded the second-highest Bitcoin transfer volume of the year, and the price of Bitcoin has soared from $9,000 to $12,500, an increase of about 25%.

** Information and data source: CryptoQuant and Bitstamp exchange website

** The pictures and text are from the RedBlock Digital Research Institute report, translated by Linan Zhao. Please do not reprint without permission.

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