- Large volumes of XRP and Bitcoin flowed to exchanges following Trump’s crypto reserve announcement, suggesting significant profit-taking.
- Bitcoin hourly exchange inflows jumped from 500-1,000 to 6,739 BTC one day after Trump’s statement, while XRP saw inflows of 193 million tokens.
- CryptoQuant analysts warn Bitcoin’s “apparent demand” has contracted for the first time since September 2024, potentially limiting future price rallies.
Major cryptocurrency holders rushed to deposit substantial amounts of XRP and Bitcoin on exchanges shortly after former U.S. President Donald Trump announced plans for a national crypto strategic reserve. This exchange migration coincided with sharp price reversals following initial surges, indicating significant profit-taking activity by large investors.
According to on-chain analysis firm CryptoQuant, exchange inflows for XRP reached approximately 193 million tokens in the hours following Trump’s announcement. The report published Tuesday highlighted that most of these transactions came from “whales” – influential cryptocurrency holders moving at least 1 million XRP at once.
Bitcoin experienced a similar pattern, with hourly exchange inflows spiking dramatically. What normally ranged between 500-1,000 BTC surged to 6,739 BTC within a day after Trump’s statement. Simultaneously, Ethereum (ETH) saw a massive spike with nearly 300,000 tokens flowing to exchanges within a single hour.
Cryptocurrency analysts interpret these exchange inflows as potential selling pressure, as traders typically store significant holdings in offline “cold” wallets for security, only transferring to exchanges when preparing to sell.
The market’s rapid ascent and subsequent decline earlier this week revealed deeper structural issues. CryptoQuant analysts noted that real spot demand for cryptocurrencies remains weak, with Bitcoin’s apparent demand growth continuing to decline after its November-December 2024 acceleration period sparked by U.S. election results.
“Bitcoin apparent demand growth has continued to decline after a period of acceleration in November–December 2024 spurred by the U.S. election results and is now in contraction territory for the first time since September 2024,” the analysts stated. “Unless Bitcoin demand starts to increase again, sustaining a rally in crypto prices will remain challenging.”
The “apparent demand” metric evaluates Bitcoin’s market health by comparing newly mined coins against changes in long-term holdings (coins inactive for over a year). This technical indicator has shown retail accumulation trending downward since early November, suggesting limited organic buying pressure despite headline-driven price movements.
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