On-chain data shows the ratio between the Bitcoin profit and loss being sent to exchanges is approaching euphoric bull market levels.
The volume of deposits and withdrawals to exchanges can be compared to the total volume settled on-chain, providing a tool for assessing the appetite of investors to trade Bitcoin.
Below is a chart that shows the trend in this volume dominance of the exchange deposits and withdrawals relative to the rest of the network.
At the moment, the exchange volume is making up for 33% of all transactions occurring on the BTC network. This level is higher than the peak from early 2025, but lower than the surge from Q1 2024.
Clearly, investors are participating in a lot of trading currently, but what’s the nature of this activity? For the deposit side of things specifically, holder behavior can be broken down by separating between profit and loss transactions.
Here is a chart that shows the data related to the average amount of profit/loss involved with exchange deposits on the Bitcoin network:
From the chart, it’s apparent that spending behavior among Bitcoin investors has largely been profit-driven recently, with the profitable transactions involving an average realized gain of $9,300, far outweighing the $780 dollar in loss that the average loss coin is realizing in its deposits to exchanges.
“This places the average profit at 12x larger than losses, which is pushing the ratio between the two near the extremes often seen in the most energetic stages of prior bull markets,” notes the analytics firm.
At the time of writing, Bitcoin is floating around $105,800, down almost 5% in the last seven days.
