Bitcoin IFP Indicates Possible Turnaround: What It Signifies

Recent on-chain data reveals that the Bitcoin Inter-exchange Flow Pulse (IFP) indicates early signs of a potential turnaround, implying that Bitcoin tokens are beginning to shift towards derivatives platforms. This article examines what this shift could mean for the cryptocurrency market and Bitcoin's future price movements.

Key Takeaways

The Bitcoin Inter-exchange Flow Pulse (IFP) has shown early signs of recovery, indicating a shift towards derivatives platforms.
A rising IFP suggests increased speculative interest in Bitcoin, while a declining IFP hints at reduced risk-taking by traders.
Despite recent fluctuations, the IFP is currently below its 90-day moving average, which usually correlates with bearish market conditions.
A crossover beyond the 90-day MA could signal potential bullish price action for Bitcoin.
The Bitcoin Open Interest has also surged by 3.2%, indicating a rise in BTC positions on derivatives exchanges amid recent price changes.

Bitcoin

Bitcoin IFP Shows Signs of Recovery, Yet Remains Below Market Threshold

According to insights shared by an analyst in a CryptoQuant Quicktake post, the Bitcoin Inter-exchange Flow Pulse (IFP) seems to have reached a recent low. The IFP is a key indicator that tracks how much Bitcoin is being transferred between spot exchanges and derivatives platforms. When this metric is on the rise, it reflects that investors are increasingly moving their assets to derivatives, signaling growing speculative interest in the crypto market.

In contrast, if the IFP is declining, it indicates that traders are cautious, reducing the number of tokens they transfer to derivatives markets.

The following chart illustrates the trend of the Bitcoin IFP alongside its 90-day moving average (MA) over the past decade:

Bitcoin IFP

As shown in the chart, the Bitcoin IFP reached a peak in the first quarter of 2025 but then started to decline, indicating a decrease in speculative activity. Following this downward trend, the IFP dropped below its 90-day MA. CryptoQuant considers such a crossover as bearish, associating periods when the IFP is under the 90-day MA with bear markets or market corrections.

Interestingly, despite Bitcoin achieving remarkable bullish momentum and setting a new all-time high later in 2025, the environment remained bearish from the IFP's perspective, as its values continued to decline.

Recently, signs of a turnaround seem to have emerged, with the IFP indicating an uptick. This rise in flows to derivatives exchanges for Bitcoin has coincided with a recovery in its price. However, the IFP is still considerably below its 90-day MA.

Historically, Bitcoin price action has tended to become bullish following a break above this line, suggesting that this crossover could be favorable this time too. It remains uncertain whether speculative activity will increase sufficiently to surpass this critical threshold.

In terms of market speculation, the Bitcoin Open Interest—a measure of the number of BTC derivatives contracts currently open—has jumped by 3.2% amid Bitcoin's recent price pullback, as noted by CryptoQuant community analyst Maartunn in a post on X.

Bitcoin Open Interest

Current BTC Price

Recently, Bitcoin has undergone a decline, with its price dropping from $95,000 to $91,200 over the last couple of days.

Bitcoin Price Chart

The coin appears to have started the week on a bearish note, making it essential to monitor price developments closely as the market reacts to the changes in IFP and Open Interest data.