Analyst: Bitcoin Exchange Outflows Improve Supply Conditions, but Evidence Still Supports Neutral Stance
As of October 27 (UTC), Bitcoin exchanges recorded net outflows of 12,702 BTC, reversing a 7,278 BTC net inflow on October 26; seven-day and 30-day net outflows stood at 4,633 BTC and 4,048 BTC, respectively. According to ChainCatcher, CryptoQuant analyst CoinNiel said the outflows indicate improving supply conditions, but the evidence still supports a neutral stance, noting that exchanges recorded inflows on four of the past seven days.Funding rates were 0.00762%, above their seven-day and 30-day averages, indicating a long bias that was not yet overheated. Open interest was $25.67 billion, up 0.56% over seven days and 0.33% over 30 days. LTH-SOPR fell from 1.1657 to 1.0124, near the break-even level, but does not confirm that selling has declined.CoinNiel said he would remain neutral until Bitcoin exchange net outflows form a sustained trend. Continued outflows alongside stable funding rates and open interest would strengthen the bullish case, while a return to net inflows combined with sharp increases in both metrics would warrant reassessment. Recent outflows were largely driven by a single day, funding remained positive, and open-interest growth was modest.