[Analysis] "Bitcoin, the trap of a quiet market... IFP indicator sends warning signals"

On-chain indicators have detected that Bitcoin (BTC)'s structural vulnerability is gradually accumulating.

On the 15th (local time), CryptoQuant author XWIN Research Japan said, "The IFP (Inter-Exchange Flow Pulse) indicator, which shows fund flows between exchanges, has shifted into the red zone, and capital movement between exchanges is noticeably slowing."

IFP is an indicator that shows how actively Bitcoin moves between exchanges and indirectly reflects market liquidity and capital circulation. When the indicator is in a high range, arbitrage and liquidity provision operate smoothly and order books remain relatively deep. Conversely, if the IFP falls, capital circulation slows and an environment forms where prices overreact even to small trades.

The author said, "This flow coincides with exchange Bitcoin balances remaining at historically low levels," adding, "The limited amount available for sale can support the downside of prices in the short term, but at the same time brings the side effect of thinner order books." He explained that in this case, if the price begins to move in one direction, slippage can widen quickly and volatility can also increase sharply.

Accordingly, the author diagnosed, "The core risk in the current Bitcoin market lies in structural liquidity vulnerability rather than large-scale selling," and "Until liquidity recovery is confirmed, sudden price fluctuations are likely to repeat, and leveraged positions can be especially vulnerable in this environment."