Bitcoin exchange inflows have plummeted to levels last seen nearly a decade ago, according to recent data from the on-chain analytics platform CryptoQuant.
Daily BTC inflows have been decreasing significantly since the cryptocurrency’s peak price of $73,800.
As of April and May 2024, major cryptocurrency exchanges are recording some of the lowest daily inflows in ten years.
On April 20, only 8,400 BTC entered exchanges, a number reminiscent of times when Bitcoin was priced under $1,000 per coin.
CryptoQuant monitors a substantial number of spot and derivative exchanges to gather these insights.
This trend signifies a major shift in investor behavior, indicating a newfound reluctance to position Bitcoin for quick sales on exchanges.
Institutional interest in Bitcoin has been growing, suggesting the dawn of a new era in cryptocurrency investment.
Despite the price’s recent volatility, including a drop to $56,500 last week, the desire to increase Bitcoin holdings remains strong, according to reports from Cointelegraph.
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Market analysts continue to keep a close eye on Bitcoin whales—investors who hold large amounts of BTC.
CryptoQuant contributor Mignolet noted that whales, particularly those holding between 1,000 to 10,000 BTC, have been largely inactive in terms of selling during the current market uptrend.
“Whales may not be willing to sell yet as the cycle has not ended,” Mignolet explained, highlighting a potential increase in over-the-counter (OTC) market activities that could absorb significant sell volumes without requiring deposits into exchanges.
Checkmate, a pseudonymous lead on-chain analyst at Glassnode, expressed skepticism about the practice of “whale watching.”
He suggested that many of the large wallets being tracked might be linked to entities like ETFs rather than individual high-stake investors.
“There will be some actual whales yes…but as both buyers and sellers. Not once have I seen true alpha extracted from whale watching,” he stated on social media platform X.
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