Bitcoin Exchange Outflows Continue To Rise: Investor Confidence At An All-Time High?

The price of Bitcoin (BTC) has not been particularly impressive over the weekend, which has been a somewhat consistent theme of the cryptocurrency market so far in the year 2025. The premier cryptocurrency continues to hover around the $108,000 mark, showing signs of indecision amongst the investors.

With the coin’s indecisive price action, the conversation has been about when the Bitcoin price will return to its all-time high. Interestingly, the latest on-chain data shows that investors are becoming increasingly confident in the long-term promise of the flagship cryptocurrency.

Bitcoin Exchange Inflow/Outflow Ratio Below 1: On-Chain Analyst

In a July 5 post on the X platform, an on-chain analyst with the pseudonym Darkfost revealed that Bitcoin has continued to flow out of centralized exchanges over the past few months. The online crypto pundit mentioned that this trend reflects the growing confidence of investors in the long term.

This on-chain observation is based on the Bitcoin Exchange Inflow/Outflow Ratio 30DMA, a metric that measures the volume of BTC flowing in and out of centralized exchanges over a period of 30 days. A high ratio (>1) indicates more inflows than outflows into exchanges, signaling increased selling pressure for the premier cryptocurrency.

On the other hand, a low ratio (<1) implies that more coins are flowing out of rather than into centralized exchanges. When the Exchange Inflow/Outflow Ratio has a low value, it suggests that investors are accumulating and holding their coins in the long term.

According to Darkfost, the Bitcoin monthly outflow/inflow ratio recently fell to around 0.9, its lowest level since the bear market of 2023. With the metric now beneath the 1 threshold, it means that Bitcoin exchange outflows are dominant, reflecting a strong and sustained demand on the spot market.

The on-chain analyst said: 

As of today, demand remains present as outflows continue to dominate, with a growing number of long-term holders stepping in.

Ultimately, Darkfost believes that the confidence being shown in Bitcoin’s long-term promise is expected, considering the growing adoption by major corporations and governments, most notably in the United States. “BTC is gradually evolving into a store of value, increasingly used to strengthen treasury strategies,” the crypto analyst added.

Bitcoin Price At A Glance

As of this writing, the price of BTC stands at around $108,103, reflecting a mere 0.3% increase in the past 24 hours.