Even though the Bitcoin price momentum is anything but spectacular, network metrics remain highly relevant. It is essential to look at the long-term picture in the cryptocurrency industry. The current on-chain exchange flow indicates Bitcoin’s momentum will stay volatile for a while longer.

Bitcoin Exchange Flow Turns Positive

Over the past few months, it was customary to see a negative exchange flow for Bitcoin and Ethereum. More often than not, the difference would be rather steep, confirming fewer BTC remained on exchanges every day. Things are slowly changing, although that isn’t necessarily good news for those who hope to see a higher BTC value shortly. 

Currently, the daily exchange flow for Bitcoin is +$91.1 million. That indicates there is $91.1m more liquidity on all exchanges than before. It is not a significant amount, but the volatility is likely to increase if this keeps happening time and time again. Where this sudden influx of BTC comes from, will always be challenging to determine.


BlocDesk Bitcoin Netflow
Source: Glassnode

One contributing factor is the decrease in addresses holding 10 BTC or more. Recording a four-year low at this time is rather problematic, although not entirely unexpected either. As there are still over 147,000 addresses with such a balance, there is no immediate concern. However, this decrease has been visible for some time now and shows no signs of slowing down. 

What this means for Bitcoin in the long term is difficult to determine. The lack of liquidity has not made much of a price impact. Whether the increase in exchange flow will trigger the same sideways momentum is a different matter. More liquidity is rarely beneficial for market prices, but Bitcoin tends to do its own thing. As long as the price hovers near the current level, things are bound to get interesting. 

Realized Cap Keeps Moving Higher

Several metrics regarding Bitcoin deserve a lot more interest and attention. The realized cap is such a metric, as the exchange flow does not necessarily impact it. Currently, Bitcoin’s realized cap has reached a new all-time high of $362.125 billion. Slowly but surely, the number keeps rising, which bodes well for the long-term game. 

BlocDesk BTC Realized Cap
Source: Glassnode

As the realized cap keeps moving higher, it confirms the long-term viability of Bitcoin in the price department. Regardless of current or temporary market volatility, Bitcoin remains the best-performing asset on the market today. It has no competition from traditional vehicles like stocks, bonds, precious metals, or anything else. 

Whether this means there will be another Bitcoin price all-time high this year remains uncertain. There is a lot of market volatility today capable of keeping the price down for a while to come. At the same time, the overall appeal of BTC has not diminished in the slightest. The remainder of 2021 will prove rather interesting for many different reasons.