BitcoinBTC) mid-size wallet inflows to Binance fell to 3,000–4,000 BTC, marking a multi-year low in sell-side activity from this cohort.
Coinbase also recorded similar inflows of about 8,500 BTC on April 19. Other exchanges, however, saw smaller inflows. The Binance Bitcoin exchange has also seen Bitcoin flows fall to levels of 2023. But how significant is this to the current market?
Inflows of Binance BTC drop sharply from 2023 to 2023 levels
CryptoQuant data classifies mid-size wallets as the entities holding roughly 100–1,000 BTC, often linked to active traders and smaller institutions. These wallets are known to send coins to exchanges in distribution periods. This makes their coin movements a good indicator of near-term sales intent.
Amr Taha, Crypto Analyst noted that seven-day average Bitcoin inflows from this cohort into Binance have dropped to 3,000–4,000 BTC. The deposits from April 2023 ranged between 5,500 and 6,000 BTC.
As fewer coins have been placed on the exchanges, there is less immediate pressure from the sell side. However, inflows do not necessarily translate to active selling.
Chart shows no similar surge either from the retail market (1-100 BTC), with small wallets only contributing a limited amount of inflows on Tuesday, less than 300 BTC. This suggests a more limited flow than widespread selling pressure.
Related: Bitcoin metrics line up bull signals with $78K the BTC price level to beat
Coinbase dominates Bitcoin flow
Data from CryptoQuant provides a different perspective. CryptoQuant Data shows Coinbase’s mid-sized investor inflows reached 8,500 BTC in April, approaching the levels seen last after the collapse of FTX in November 2022.
BTC activity on other exchanges was relatively low. Amr Taha pointed out that the data does not reflect what a large distribution phase looks like, which would be synchronized flows across several exchanges.
Coinbase also experienced a similar surge on January 14, just before Bitcoin dropped from $95,000 down to $67,000 by February. But the present conditions are different. Exchange inflows seem to be scattered rather than spread across the market, suggesting mixed feelings rather than a coordinated allocation.
Axel Adler Jr., a Bitcoin researcher. highlights A more profound shift in supply dynamics. Bitcoin’s 30 day net flow decreased to -300,000. BTC, from +94,000 BTC, in February. The drop signals a withdrawal phase. As of April 21, the metric is near -98,000 BTC, with withdrawals slowing down.
Adler Jr. added The exchange reserves are down by 105,000 BTC in the last seven weeks. This is a significant drop since March. Even during the pullback on April 2, which was towards $67,000, no coins were returned to exchanges.
Related: Inside the ‘fake police raid’ that forced a $1M Bitcoin transfer
The article has been produced according to Cointelegraph’s editorial policy and is only intended as a source of information. The article is not intended to be investment advice. Readers are advised to carry out independent research on all investments before taking any decision. Cointelegraph cannot guarantee accuracy and completeness in the information provided, which includes forward-looking statement, nor can it be held responsible for loss or damages arising from this content.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
