Bitcoin exchange inflows are reaching record lows, according to data from on-chain analytics platform CryptoQuant. Since Bitcoin’s all-time high of $73,800, daily BTC inflows have significantly decreased. This decline in inflows is reminiscent of levels seen in 2014. Traders are holding onto their coins instead of keeping them readily available for sale on exchanges. In April and May 2024, the daily inflows to major exchange accounts were some of the lowest in the past decade. For example, on April 20, only 8,400 BTC flowed into exchanges, a level not seen since Bitcoin was valued at less than $1,000 per coin. CryptoQuant tracks both spot and derivative exchanges to compile this data.
These numbers reflect a shift in sentiment among Bitcoin hodlers as institutional involvement in Bitcoin investment increases. Despite short-term price volatility, there is a persistent appetite for increasing exposure to BTC. Market observers have been keeping an eye on Bitcoin whale cohorts, particularly those holding between 1,000 BTC and 10,000 BTC. However, these whales have not been consistently participating in the current uptrend cycle, which suggests they may not be willing to sell yet. It is possible that there is demand for Bitcoin outside of exchanges, particularly in the OTC market, that can absorb large selling volumes even without deposits into exchanges post-ETF approval.
The introduction of spot Bitcoin exchange-traded funds (ETFs) could be influencing the current market landscape. Checkmate, a pseudonymous lead on-chain analyst at data firm Glassnode, believes that the big “whale” wallets being observed are likely ETFs and exchanges. However, it is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.