IntoTheBlock has built a proprietary machine learning powered classifier to identify addresses of top centralized exchanges, including their deposit addresses, withdrawal addresses, hot wallets and cold wallets. With this classifier, IntoTheBlock can measure the total amount of a given crypto-asset flowing out of exchanges’ withdrawal addresses, shown as the The Outflow Volume indicator.
Exchanges Outflow Volume for Bitcoin
While Inflow Volume at times anticipate volatility, Outflow Volume is often more reactive. In other words, Outflow Volume often spikes following either a crash or a significant break-out as shown in the example above. This could potentially be interpreted as users going long and opting to hold their crypto outside centralized exchanges.