Bitcoin stays in range as March exchange outflows signal steady accumulation

Bitcoin logged net outflows from centralized exchanges throughout March, according to CryptoQuant. Withdrawals exceeded deposits for most of the month, except for a brief inflow before the price reached a six-week high near $76,000 on March 17.

Exchange flow metrics track coins moving onto and off trading platforms. Inflows can precede selling, while outflows often reflect transfers to self-custody for longer holding periods.

The CryptoQuant analyst known as Darkfost described a persistent negative net flow even during what he called a “liquidation phase,” adding that investors “continue to buy and withdraw their BTC from exchange platforms.” He argued demand is “not yet strong enough to restart a trend,” yet withdrawals “clearly indicate ongoing accumulation” and are one factor behind the price range that has formed in recent months.

Jeff Mei, chief operations officer at BTSE, noted that “crypto has outperformed stocks and gold since the beginning of the Iran war,” arguing that investors are adding Bitcoin. He added that digital assets were oversold ahead of the conflict, which helps explain why they “haven’t sold off as hard as stocks,” and suggested the trend could align with growing institutional participation and use as a hedge against equities.

Price action in March showed early signs of construction, with Bitcoin setting higher highs and higher lows at least twice during the month. In a report this week, on-chain analytics firm Glassnode observed a slight improvement in net unrealized profits and losses, indicating some easing in paper losses, while noting that overall sentiment remains under pressure. The recent VanEck report showed that long-term Bitcoin holders slowed distribution in the latest month, with overall transfer volume on the Bitcoin network falling 31% in the latest period.

Negative exchange netflows dominated most of March, interrupted by a single spike in deposits before the mid-month high. Exchange netflow metrics measure the difference between coins moving onto and off platforms over a set period. CryptoQuant’s data indicate the recent pattern lines up with a multi-month range in Bitcoin trading.