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

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  • 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

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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