Bitcoin exchange inflows are reaching record lows, with data from CryptoQuant showing a significant decline since Bitcoin’s all-time high of $73,800. Traders are holding onto their coins and not keeping them readily available for sale on exchanges. In April and May of this year, daily inflows to major exchange accounts were the lowest they have been in the past decade. 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. This shift in sentiment reflects a new era of institutional involvement in Bitcoin investment. Despite short-term price volatility, there is continued appetite for increasing exposure to BTC. Market observers are closely watching Bitcoin whale cohorts for positive events. However, whales holding between 1,000 and 10,000 BTC have not been consistently participating in the current uptrend cycle, indicating that they may not be willing to sell yet. There may be demand for Bitcoin outside of exchanges, particularly in the over-the-counter market, that can absorb large selling volumes even without deposits into exchanges post-ETF approval. The introduction of spot Bitcoin exchange-traded funds is also shaping the market landscape. It’s important for readers to conduct their own research and exercise caution when making investment decisions.
Inflows to Bitcoin exchange reach lowest levels in a decade following record-breaking $74K highs