Bitcoin Inflows Plummet to 10-Year Lows Amid $74K All-Time Highs
Data from CryptoQuant, an on-chain analytics platform, reveals that Bitcoin exchange inflows have dropped to their lowest levels in almost a decade. Since Bitcoin reached its all-time high of $73,800, daily BTC inflows to exchanges have significantly declined. April and May 2024 saw some of the lowest daily inflows to major exchange accounts in the past ten years, with just 8,400 BTC flowing into exchanges on April 20. This level of inflow has not been seen since Bitcoin was valued under $1,000 per coin. CryptoQuant tracks a wide range of spot and derivative exchanges to compile its data.
This decline in exchange inflows reflects a shift in sentiment among Bitcoin investors this year, as institutional involvement in Bitcoin investment enters a new era. Despite short-term price volatility, there has continued to be an appetite for increasing exposure to BTC. Market observers caution against relying too heavily on monitoring Bitcoin whale cohorts. Whales holding between 1,000 and 10,000 BTC, which usually contribute to downward market volatility, have not consistently participated in the current uptrend cycle. This suggests that whales may not be willing to sell yet as the cycle is not yet complete.
CryptoQuant contributor Mignolet suggests that there may be demand for Bitcoin outside of exchanges, particularly in the over-the-counter (OTC) market. This demand could absorb large selling volumes even without deposits into exchanges after ETF approval. Some analysts argue that data around whale entities is noisy and may include ETFs and exchanges rather than true whales. They caution that true alpha, or market-beating returns, cannot be extracted from whale watching.
The data shows a decline in Bitcoin exchange inflows, indicating a change in sentiment among Bitcoin investors. While whales have not consistently participated in the current uptrend cycle, there may be demand for Bitcoin outside of exchanges. Caution is advised when interpreting data around whale entities, as it may be noisy and include ETFs and exchanges rather than true whales.
21 thoughts on “Bitcoin Inflows Plummet to 10-Year Lows Amid $74K All-Time Highs”
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I can’t believe whales are not participating in the market. Are they manipulating the prices for their own gain?
It’s frustrating to see Bitcoin struggling after reaching such high levels. Will it ever recover?
The demand for Bitcoin outside of exchanges, especially in the over-the-counter (OTC) market, is worth noting. It’s possible that large selling volumes could be absorbed there, even without deposits into exchanges after ETF approval. 🔄
Whales should step up and contribute to the market. Their absence is causing volatility and uncertainty.
It’s interesting that the whales holding between 1,000 and 10,000 BTC haven’t consistently participated in the current uptrend cycle. It seems like they may not be willing to sell just yet, indicating that the cycle isn’t complete.
The OTC market might be absorbing the selling volumes, but what does that mean for the overall market?
This decline in exchange inflows is a bad sign. Is Bitcoin losing its appeal to investors?
This article is just making me more confused about the state of Bitcoin. Can we get some reliable information?
The decline in Bitcoin exchange inflows definitely indicates a change in sentiment among Bitcoin investors, but it’s good to know that there may be other factors at play, such as demand outside of exchanges. Caution and careful interpretation of data is advised.
The decline in Bitcoin exchange inflows is concerning. Is this a sign of a bearish market trend?
The market is so unpredictable. I don’t know if I can trust any analysis anymore.
Despite short-term price volatility, it’s great to see that there’s still an appetite for increasing exposure to BTC! The institutional involvement in Bitcoin investment is truly entering a new era.
I invested heavily in Bitcoin, and now with the drop in exchange inflows, I’m worried about the future of my investment.
This article seems biased and unreliable. Can we trust the data from CryptoQuant?
So much for institutional involvement. I thought it would bring stability to the market.
This data is just noise. I’m tired of trying to make sense of the cryptocurrency market.
I trusted the whales to lead the way, but now I don’t know what to make of their absence.
I’ve lost faith in Bitcoin. The market is too volatile, and there’s no clear direction.
It’s important to approach data around whale entities with caution. Some analysts argue that it may be noisy and include ETFs and exchanges rather than true whales. 🕵️♀️ True alpha, or market-beating returns, cannot be extracted from just whale watching. 👀
Wow, it’s amazing to see how Bitcoin exchange inflows have dropped to their lowest levels in almost a decade! 📉 This definitely reflects a shift in sentiment among Bitcoin investors. 👏
I don’t know who or what to believe anymore. Is there any true alpha in the Bitcoin market?