Key Points
- Bitcoin exchange inflows are hitting near-decade lows, according to data from CryptoQuant.
- The trend reflects a significant shift in hodler sentiment amid increased institutional involvement.
Bitcoin (BTC) exchange inflows are reaching lows not seen in almost ten years, according to recent data.
Data from on-chain analytics platform CryptoQuant reveals that daily BTC inflows have significantly declined since Bitcoin’s all-time high of $73,800.
Lowest Inflows Since 2014
Traders seem reluctant to keep coins readily available for quick sale on exchanges.
CryptoQuant data indicates that April and May 2024 have seen some of the lowest daily inflows to major exchange accounts in the past decade.
On April 20, when BTC/USD levels were around the same as they are currently, only 8,400 BTC flowed into exchanges.
Such low inflow levels were last observed when Bitcoin was trading at less than $1,000 per coin.
CryptoQuant compiles its data from a large number of both spot and derivative exchanges.
Change in Hodler Sentiment
This year has seen a significant shift in hodler sentiment, as Bitcoin investment sees increased institutional involvement.
Despite short-term BTC price volatility, the appetite for increased exposure to BTC has remained consistent.
Market observers continue to highlight positive events tied to Bitcoin whale cohorts.
CryptoQuant contributor Mignolet noted in a recent research update that whales in the range of 1k to 10k, which usually cause significant downward market volatility, have not been consistently participating in the current uptrend cycle.
Mignolet suggested that these whales may not be willing to sell yet as the cycle has not ended.
“There might be demand outside of exchanges, particularly in the OTC (over-the-counter) market, capable of absorbing large selling volumes even without deposits into exchanges post-ETF approval,” Mignolet wrote.
However, Checkmate, the pseudonymous lead on-chain analyst at data firm Glassnode, said that the new spot Bitcoin exchange-traded funds were likely shaping the numbers.
“Data around these entities is notoriously noisy, and I can almost guarantee that the big ‘whale’ wallets you’re watching are ETFs, and exchanges,” he stated. “There will be some actual whales yes…but as both buyers and sellers. Not once have I seen true alpha extracted from whale watching.”
