The quantity of Bitcoin flowing into cryptocurrency exchanges has dropped to a level not seen in nearly ten years, according to data from on-chain analytics platform CryptoQuant. This downward trend has been noticed since Bitcoin reached its all-time high of $73,800. The data reveals that Bitcoin traders seem less inclined to keep their coins readily available for swift sale on exchanges.
The two months of April and May 2024, in particular, have recorded some of the lowest daily inflows to major exchange accounts in the past decade. For instance, on April 20, only 8,400 Bitcoin entered exchanges, a figure reminiscent of the time when Bitcoin traded under $1,000 per coin.
These findings reflect a significant shift in the sentiment of Bitcoin holders, as Bitcoin investments attract more institutional interests. There appears to be a consistent interest in increasing exposure to Bitcoin, despite its short-term price volatility, including a plunge to $56,500 last week.
There are also positive indicators linked to Bitcoin whale cohorts–entities holding between 1,000 and 10,000 Bitcoin. According to CryptoQuant contributor Mignolet, these institutions, that often contribute to significant market volatility, have not consistently been part of the recent uptrend cycle.
Mignolet suggests that even in the face of large selling volumes after the ETF approval, there is likely enough demand in the over-the-counter market to absorb this without needing to deposit into exchanges. On this, however, Glassnode’s lead on-chain analyst Checkmate differs. He states that the new spot Bitcoin exchange-traded funds are probably shaping the numbers and that data related to the whale entities is often inaccurate.