Bitcoin (BTC) exchange inflows are reaching record lows, according to recent data from on-chain analytics platform CryptoQuant. Inflows have declined significantly since Bitcoin’s all-time high of $73,800. Traders are holding onto their coins instead of selling them quickly on exchanges. In April and May 2024, the daily inflows to major exchange accounts were some of the lowest in the past decade. On April 20, when BTC/USD was at similar levels to the present, only 8,400 BTC flowed into exchanges. This is the smallest flow since Bitcoin was trading at less than $1,000 per coin. CryptoQuant tracks both spot and derivative exchanges to compile this data.
These numbers reflect a shift in investor sentiment this year as Bitcoin sees increased institutional involvement. Investors are still interested in increasing their exposure to BTC despite the short-term price volatility. Market observers are paying attention to Bitcoin whale cohorts, particularly those with holdings between 1,000 BTC and 10,000 BTC. These whales have not been consistently participating in the current uptrend cycle, which is unusual for them. It is possible that they are not willing to sell yet because they believe the cycle has not ended. There may be demand for Bitcoin outside of exchanges, particularly in the over-the-counter (OTC) market, which can absorb large selling volumes even without deposits into exchanges post-ETF approval.
However, the data around these entities is often noisy, and some believe that the big “whale” wallets being watched are actually exchange-traded funds (ETFs) and exchanges themselves. The presence of new spot Bitcoin ETFs may be shaping the numbers. It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.