Market Opening: ETH exchange outflow hits yearly high

Last week, I introduced the power of on-chain metrics to help investors create an investment framework.

We looked at the correlation between whale addresses (addresses consisting of >1,000 BTC), and the price of BTC.

Today, I am bringing you a similar on-chain metric: exchange netflows (net inflows minus outflows).

As mentioned last week, all transactions on public blockchains can be tracked. From this, we are able to derive how many crypto assets enter or leave exchanges.

It can be assumed that exchange inflows signal selling pressure, while exchange outflows signal that investors are accumulating coins and likely holding them in wallets.

According to data from IntoTheBlock, on Tuesday March 15, there was an outflow of 180k ETH from centralised exchanges.

The last time such an amount of ETH was withdrawn from exchanges was October 2021, which led to a 15% price increase within 10 days.

ETH finished last week in double-figure gains, the only Top 10 crypto by market cap besides AVAX.

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