• Bitcoin Interexchange Flow Pulse (IFP) is an indicator that measures the 1-year cumulative net flows between Coinbase and derivative exchanges.
• When the value of this metric rises, it means investors are transferring more coins from spot to derivative exchanges right now, and are hence willing to take up more risk.
• On-chain data shows the Bitcoin Interexchange Flow Pulse is about to see a trend reversal, which could be a sign of a bullish period for the cryptocurrency.

The Bitcoin Interexchange Flow Pulse (IFP) is a metric used to measure the 1-year cumulative net flows between Coinbase and derivative exchanges. The value of this indicator is an important factor in determining the current sentiment of the crypto market. When the IFP rises, it means that investors are transferring coins from spot to derivative exchanges and thus, are willing to take up more risk.

Recently, on-chain data has revealed that the Bitcoin Interexchange Flow Pulse is about to experience a trend reversal, which could be a signal that the cryptocurrency is entering a bullish period. CryptoQuant’s year-end dashboard release showed that the trend shifts in this metric have historically coincided with changes in the market.

Generally, during bull markets, the indicator has seen a constant climb and has stayed above its 90-day moving average. This is because investors are more willing to take on risk during a bullish period, and so they will transfer more coins from spot to derivative exchanges.

For instance, the chart below shows the trend in the Bitcoin Interexchange Flow Pulse, as well as its 90-day moving average (MA), over the last few years:

Chart showing the trend in the Bitcoin Interexchange Flow Pulse | Source: CryptoQuant

As can be seen from the chart, the value of the metric may be beginning to turn around. If the trend reversal is confirmed, it could suggest that investors are indeed willing to take on more risk and that the cryptocurrency is entering a bullish period. This could be good news for the crypto market and may lead to an increase in prices.

At the same time, it is important to remember that the Bitcoin Interexchange Flow Pulse is only one of the many indicators that are used to evaluate market sentiment. Other metrics such as whale and shark addresses can also provide valuable insights into the current trend. As always, it is important to do your own research and to keep an eye on the market before making any investment decisions.