Bitcoin Exchange Inflows Plunge After Record Rally, Signaling Softer Sell Pressure

Key indicators suggest declining selling pressure as Bitcoin eyes a potential return to six-figure territory

  • Bitcoin’s price reached $108,000 in December 2024 before experiencing a 10% decline.
  • Exchange inflows peaked at 98,748 BTC on November 25, 2024.
  • December 2024 saw daily exchange transfers ranging from 11,000 to 79,000 BTC.
  • Reduced exchange inflows indicate decreasing sell-side pressure.
  • Miner outflows have decreased since November 2024, suggesting miners are holding positions.

Bitcoin Market Shows Shifting Dynamics as Exchange Activity Cools

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The cryptocurrency market’s leading asset has shown notable changes in trading patterns following its December 2024 peak, with data indicating a substantial reduction in both exchange deposits and miner selling activities.

Exchange Flow Analysis

Data from analytics platform CryptoQuant reveals a marked decrease in Bitcoin exchange inflows – the amount of Bitcoin being sent to trading platforms. After reaching a peak of 98,748 BTC on November 25, 2024, the inflow volume has demonstrated a consistent downward trend.

December’s daily exchange transfers, while lower than November’s peak, maintained significant activity levels between 11,000 and 79,000 BTC. This pattern suggests a gradual easing of selling pressure in the market following Bitcoin’s all-time high of $108,000 on December 17.

Miner Behavior Shifts

Miner outflows – representing Bitcoin transferred from mining operations to exchanges – have also decreased substantially since November 2024. This metric serves as a key indicator of miners’ selling intentions, with lower outflows typically interpreted as miners choosing to retain their Bitcoin holdings.

The concurrent decline in both exchange inflows and miner outflows presents a potential signal of reduced selling pressure in the market, particularly following the 10% price correction from December’s peak. This pattern often indicates a shift in market sentiment, as fewer participants are positioning their assets for immediate sale.

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