Bitcoin Exchange Inflows Increase as Traders Adjust Holdings

Bitcoin has seen a notable increase in exchange balances recently, with around 64,000 BTC, equivalent to about $4.1 billion, moving onto exchanges in the past month, based on Glassnode data.

This follows a trend of declining exchange-held Bitcoin that began in early 2024, which was influenced by the introduction of spot Bitcoin ETFs in the US and was further intensified after the halving event in April.

At the end of 2023, Bitcoin exchange balances rose sharply, peaking in late January 2024. This increase coincided with a local price dip, which came after the initial hype around Bitcoin ETFs subsided. Traders likely moved Bitcoin to exchanges to benefit from a price rally that started in October.

However, as Bitcoin’s price surged again around March and May 2024, a significant amount of Bitcoin flowed out of exchanges, indicating a preference among investors to store their assets in personal wallets for the long term.

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Recently, the trend has reversed with a noticeable influx of Bitcoin back onto exchanges. This suggests that traders might be selling into the market dip or adjusting their positions based on current price movements. Such inflows often signal an uptick in trading activity, potentially for profit-taking or preparing for upcoming market changes.

Since July 14, there has been a small reversal, with approximately 1,000 BTC moving off exchanges.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.