Latest data shows Bitcoin (BTC) exchange inflows are at lowest levels not seen in nearly a decade.
Figures from on-chain analytics platform CryptoQuant show that daily BTC inflows have decreased significantly since Bitcoin’s all-time high of $73,800.
Bitcoin exchange inflow channel 2014 level
Bitcoin traders are not in the mood to store their coins so they can quickly sell them on exchanges.
According to CryptoQuant, April and May 2024 saw the lowest daily inflows to major exchange accounts in the past decade.
On April 20th, when BTC/USD was roughly at the same level as of this writing, only 8,400 BTC flowed into exchanges.
The last time these small flows were observed was when Bitcoin was trading below $1,000 per coin.
CryptoQuant tracks numerous spot and derivative exchanges to collect data.
These numbers reflect a significant shift in hodler sentiment this year as Bitcoin investing enters a new era of institutional participation.
As Cointelegraph continues to report, the appetite for increased exposure to BTC has persisted despite short-term BTC price volatility, including last week’s trip to $56,500.
Analyst Warns Against Bitcoin ‘Whale Watching’
Market observers continue to point out positive events related to the Bitcoin whale population.
Related: Bitcoin Traders Mark Key Level As BTC Price Attacks $64K Liquidity.
“Whales in the 1,000-10,000 range, which typically provide significant downside volatility to the market, have not consistently participated in the current uptrend cycle,” CryptoQuant contributor Mignolet wrote in one of this week’s Quicktake research updates.
Mignolet refers to a group of whales holding between 1,000 and 10,000 BTC. The attached chart shows the consumed output age range of on-chain transactions.
“The whales may not be willing to sell yet because the cycle is not over,” the post added.
“There may be demand outside of exchanges, particularly in the OTC (over-the-counter) market, which has the ability to absorb large sales without requiring ETFs to be approved and deposited on exchanges,” Mignolet wrote.
However, regarding the current market environment, Checkmate, pseudonymous senior on-chain analyst at data firm Glassnode, said a new spot Bitcoin exchange-traded fund is likely to shape the numbers.
“The data on these companies is notoriously noisy. You can be almost certain that the big ‘whale’ wallets you’re looking at are ETFs and exchanges,” he said. said Some followers of X (formerly Twitter) posts.
“There will even be actual whales. But both buyers and sellers do. I’ve never seen a true alpha extracted from whale watching.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.