24H Fund Flows, Large Amount of Transfers, What Investment Signals are They Conveying?

3 min readMar 22, 2019

We always see such news like the net inflow/outflow of a certain currency reached hundreds of millions in 24 hours, ranking first; or a large number of currencies were transferred. Behind these broadcasts, what kind of signals are they conveying? What effect will it have on the currency price?

Generally, a currency is like a pool of funds, it has the inflows and outflows, and such flows represent the active level of this currency, which will influence the price fluctuation.

24H Fund Inflow

The inflow of funds represents the fund amount cost in purchasing this currency, or the so-called “funding favor”.

It conveys the signals below:

  1. Activity. Fund transaction volume is the core of currency, with their participation, representing that the currency is active.
  2. The actual activity of seeing bullish or bearish. Normally, the fund inflow represents that the investors are optimistic about this currency, except churning, wash trading, etc.
  3. The inflow of funds does not necessarily bring about a rise in the price of the currency. We also need to take the market conditions and market sentiment into considerations. For example, in the market bottom, if there is a large fund inflow, the later rise is worthy of expectation, on the contrary, if only the amount changes and there is no other confirmed signals, then this judgment cannot be made.

24H Fund Outflow

The outflow of funds represents the fund amount got in selling this currency, or the so-called “funding escape”.

  1. Activity.
  2. Investors are not optimistic about the currency, that is, to sell their holding currencies.
  3. The outflow of funds does not necessarily lead to a decline in the price of the currency. It is also necessary to combine the market and market sentiment to make a comprehensive judgment. For example, if the outflow appears in the top, then investors should be careful.

Large Amount Transfers

Large amount transfer represents a large-scale turnover, and only rich investors can practice such a big transaction. What impact will such a turnover have? If the daily trading volume is small, a large transfer will bring the price up; if the volume is not large, the inflow of large funds of the same amount will also bring the price up. On the contrary, such a big transfer will cause the price down.

However, if the trading volume is large, or the fund market is much larger than the funds, then the capital inflow will not have much impact on the price of the currency.

What kind of market will happen after a large amount of fund transfer? It is still necessary to combine the market and market sentiment. The escape of large funds will bring panic in the market, while the entry of large funds will increase the stability and upward momentum. Of course, the addition of large funds may also be a big move of rich investors. In short, the change of large funds is only a factor that contributes to price fluctuation, we need to conduct a comprehensive analysis.

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