As a researcher with experience in the cryptocurrency market, I find the current trend of declining Bitcoin exchange inflows quite intriguing. The data from CryptoQuant revealing historically low daily BTC inflows since the $73,800 all-time highs is an important sign of changing sentiment among traders.
The latest data indicates that inflows into Bitcoin (BTC) exchanges are at their lowest levels in almost a decade.
As a researcher analyzing data from the on-chain analytics platform CryptoQuant, I’ve noticed a substantial decrease in daily Bitcoin inflows since its record-breaking price of $73,800.
Bitcoin exchange inflows channel 2014 levels
Bitcoin traders are in no mood to keep coins available for quick sale on exchanges.
Based on data from CryptoQuant, the daily inflows to major cryptocurrency exchanges in April and May 2024 were among the lowest recorded over the past decade.
As a market analyst on April 20th, I noticed that the BTC/USD pair was trading at roughly similar levels to the current moment. During this period, approximately 8,400 Bitcoins were transferred into cryptocurrency exchanges.
In simpler terms, the last occasion when flows as minimal as these were detected occurred when the price of a Bitcoin coin was under $1,000.
CryptoQuant tracks a large number of both spot and derivative exchanges to compile the data.
As an analyst, I’ve noticed a substantial change in Bitcoin holder sentiment this year. Institutional investors are now playing a larger role in the Bitcoin market, ushering in a new era for this cryptocurrency’s investment landscape.
Despite the fluctuating price of Bitcoin (BTC) in the short term, as CryptoMoon shares, there remains a strong demand for investing more in it. Last week’s dip to $56,500 didn’t deter this appetite.
Analyst cautions on Bitcoin “whale watching”
Market observers continue to flag positive events tied to Bitcoin whale cohorts.
In a recent research update, CryptoQuant’s contributor Mignolet mentioned that whales with a trading volume between 1,000 and 10,000 units, who usually contribute considerable downward price movements to the market, have not consistently joined the ongoing bullish trend.
Mignolet spoke about large Bitcoin holders, specifically those with a balance between 1,000 to 10,000 coins. A related graph displayed the time elapsed since transactions involving on-chain transfers in various age groups occurred.
The post added that whales may “not be willing to sell yet as the cycle has not ended.”
As a crypto investor, I believe there is significant demand beyond the cryptocurrency exchanges that could absorb massive sell orders, especially in the over-the-counter (OTC) market. This demand exists even if no new deposits are made into exchanges following an Exchange-Traded Fund (ETF) approval.
As a crypto investor, I’ve been closely monitoring the current market landscape, and I must admit that the recent introduction of new spot Bitcoin exchange-traded funds (ETFs) has significantly influenced the data we see. Checkmate, Glassnode’s lead on-chain analyst, sharing my perspective, emphasized this very point.
As a seasoned crypto investor, I want to share my perspective on the inconsistent data surrounding certain entities in our market. It’s important to note that large “whale” wallets you might be tracking could very well be linked to Exchange Traded Funds (ETFs) or cryptocurrency exchanges themselves.
“There will be some actual whales yes…but as both buyers and sellers. Not once have I seen true alpha extracted from whale watching.”
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2024-05-07 17:15