Recently, there has been an interesting phenomenon—by looking at the inflow and outflow of BTC in exchanges, it seems possible to sense the overall market activity level.

How exactly to interpret this? Simply take the total amount of BTC flowing into and out of exchanges, compare it with the monthly average (represented by the red line) and the yearly average (green line). By observing the relationship between these two lines, you can determine whether the trading volume on exchanges is generally cold or hot. In other words, BTC represents the enthusiasm for the largest-scale capital entry, and its flow data best reflects the actual market temperature.

This makes it easy to understand: when BTC, the largest market cap, starts cooling down, other altcoins are even less likely to perform well. Conversely, when BTC's flow on exchanges becomes active, other tokens might have a chance to follow. So instead of guessing when the market will rebound, it's better to keep an eye on this indicator—it won't deceive you.