When negative exchange net flows occur, the tweet continues, it is, as a rule, a sign that whales and smaller investors are accumulating Bitcoin. They move it to cold storage vaults or to projects that offer yield farming.
This is the largest withdrawal since April 19, back when the price hit $56k
Negative exchanges Net Flows are usually associated with signs of accumulation, as investors look to move their assets to cold storage wallets or yield services. pic.twitter.com/cqg6gMKeyJ
— IntoTheBlock (@intotheblock) July 28, 2021
A commenter has suggested that this large withdrawal was made in response to the recent KYC rules changes announced by Binance.
The founder of Capriole Investments, Charles Edwards, also shared a chart by CryptoQuant, showing that at the moment the market is witnessing massive Bitcoin outflows from multiple crypto exchanges.