The net outflow of Bitcoin from exchanges over the past month suggests that investors are increasingly accumulating the cryptocurrency, according to a CryptoQuant analyst.
March has been largely marked by sustained Bitcoin outflows from crypto exchanges, with the exception of a brief spike in inflows ahead of the asset reaching a six-week high of $76,000 on March 17, based on CryptoQuant data.
Despite Bitcoin remaining in what the analyst described as a “liquidation phase,” the trend of negative net flows has continued.
“This persistent outflow suggests genuine accumulation by investors, who continue to buy and withdraw their BTC from exchange platforms,” said the analyst, known as Darkfost.
Typically, inflows to exchanges are viewed as bearish, as they indicate investors may be preparing to sell or convert holdings into stablecoins, increasing downward pressure. In contrast, outflows are often interpreted as a sign of accumulation and can signal potential buying pressure in the market.
Long-Term Accumulation Outweighs Short-Term Speculation
The analyst noted that while demand is not yet strong enough to trigger a new uptrend, it clearly points to ongoing accumulation and may be contributing to the range-bound price action seen over the past several months.
Nick Ruck, director at LVRG Research, said the sustained outflows reflect “genuine long-term accumulation by investors rather than short-term speculation.” He added that the continued withdrawal of Bitcoin from centralized exchanges highlights growing confidence in the asset’s fundamentals, with holders showing little interest in selling despite ongoing market volatility.
Jeff Mei, chief operating officer at crypto exchange BTSE, also pointed out that crypto markets have outperformed stocks and gold since the start of the Iran war, making the accumulation trend unsurprising.
“Crypto was oversold in the weeks and months leading up to the conflict, so it’s reasonable that it hasn’t declined as sharply as equities,” Mei said.
“This could also be an indication of Bitcoin emerging as a hedge against traditional stocks, as well as increased institutional ownership.”
Bitcoin Forms Higher Highs and Higher Lows
Another sign of a potential trend shift is Bitcoin’s price structure, which has recorded a series of higher highs and higher lows at least twice this month, according to TradingView data.
In its weekly on-chain report, Glassnode noted that net unrealized profits and losses have improved slightly, suggesting a modest reduction in paper losses across the market. However, the firm cautioned that overall sentiment remains fragile, despite early signs of stabilization.
