FameEX Hot Topics | Bitcoin Selling Cools as Exchange Inflows Drop to Lowest Level in Almost Two Years

Bitcoin inflows to major exchanges have dropped dramatically—by nearly two-thirds—since November, signaling a possible shift in market sentiment. This decline in sell-side pressure is giving analysts renewed optimism that a bullish trend may be forming. With fewer coins being sent to exchanges for sale, it appears that traders are becoming more confident in current price levels, possibly setting the stage for a period of consolidation before the next move.

On April 1, CryptoQuant analyst Axel Adler Jr. shared insights on X, emphasizing that Bitcoin sellers have seemingly “dried up.” He highlighted a sharp drop in the seven-day average of BTC being sent to exchanges, falling from 81,000 to just 29,000 BTC daily. Adler described this transition as entering “the zone of asymmetric demand,” a scenario in which demand outpaces supply and could potentially lead to upward price pressure.

This trend became most pronounced on March 23, when average inflows fell to their lowest point since May 2023. Back then, Bitcoin traded below $30,000, compared to the nearly $100,000 levels seen today. According to Adler, the market has successfully absorbed heavy profit-taking that followed Bitcoin’s breakout above six figures in late 2024, indicating that a supply crunch may be developing.

Looking ahead, Adler believes that April and May may serve as a calm consolidation phase—a pause that often precedes a fresh wave of market movement. With selling pressure fading and demand remaining steady, conditions could be ripening for a bullish surge in the coming months.

Still, short-term caution remains warranted. CryptoQuant contributor Joao Wedson observed a slight increase in inflows this week, suggesting that some short-term traders may be shifting to a more neutral stance. While the broader trend is encouraging, it’s clear the market is not without its near-term uncertainties.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.