Bitcoin IFP Hints At Potential Turnaround: What It Means

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. On-chain data shows the Bitcoin Inter-exchange Flow Pulse (IFP) has shown early signs of a turnaround recently, suggesting tokens have started moving into derivatives platforms. Bitcoin IFP Is Turning Around, But Not Yet Inside Bull Market Zone As pointed out by an analyst in a CryptoQuant Quicktake post , the Bitcoin IFP has seemingly hit a bottom recently. The “ IFP ” is an indicator that measures the amount of BTC that’s flowing between spot and derivatives exchanges . When the value of this metric is rising, it means the investors are making a higher amount of transactions from spot to derivatives platforms. Such a trend suggests speculative interest in the market is going up. Related Reading $790 Million In Crypto Longs Decimated As Bitcoin Plunges To $93,000 1 day ago On the other hand, the indicator witnessing a decline implies traders may be pulling back on risk as they are sending a lower number of tokens to derivatives markets. Now, here is a chart that shows the trend in the Bitcoin IFP, as well as its 90-day moving average (MA), over the past decade: The value of the metric seems to have been following a decline for months | Source: CryptoQuant As displayed in the above graph, the Bitcoin IFP hit a high in the first quarter of 2025 and reversed course, suggesting speculative activity began to decline. Soon after the start of this downtrend, the metric slipped under its 90-day MA. CryptoQuant considers such a crossover to be a bearish one, labeling periods with the indicator below the 90-day MA to correspond to bear markets or corrections. Interestingly, while the cryptocurrency went on to see rejuvenation of bullish momentum and set a new all-time high (ATH) later in 2025, the market environment leaned bearish from the perspective of the IFP, with the metric’s value holding a steady downward trajectory. Recently, however, the early signs of a shift may have finally emerged, as the IFP has shown a turnaround. This increase in derivatives exchange flows has come for Bitcoin as its price has gone through a recovery surge. For now, though, the indicator is still floating at a notable distance under its 90-day MA. In the past, a break beyond this line has usually led to bullish price action for the cryptocurrency, so such a crossover could potentially be a positive sign this time as well. Whether speculative activity related to the asset will rise enough to overcome this threshold only remains to be seen. Related Reading Bitcoin Short-Term Holders Take Profits: 41,800 BTC Sent To Exchanges 3 days ago Speaking of speculation, the Bitcoin Open Interest , a measure of the amount of BTC positions open on all derivatives exchanges, has surged 3.2% alongside BTC’s pullback in the past day, as CryptoQuant community analyst Maartunn has highlighted in an X post . The recent trend in the BTC Open Interest | Source: @JA_Maartun on X BTC Price Bitcoin has gone through a plunge over the last couple of days that has taken its price from $95,000 to $91,200. The price of the coin seems to have opened the week with bearish action | Source: BTCUSDT on TradingView Featured image from Dall-E, chart from TradingView.com