FameEX Hot Topics | Bitcoin Selling Slows as Weekly Exchange Inflows Hit Nearly 2-Year Low

Bitcoin inflows to major exchanges have plummeted by nearly two-thirds since November, suggesting a potential shift in market sentiment. This significant decline in sell-side pressure has analysts cautiously optimistic about the possibility of a bullish turnaround. According to new data, the market may be entering a period of consolidation as sellers step back and buyers maintain confidence in current price levels.

On April 1, CryptoQuant contributor Axel Adler Jr. highlighted on X that Bitcoin sellers appear to have "dried up." He cited a sharp decrease in the seven-day average BTC inflows to major exchanges, dropping from 81,000 to just 29,000 BTC per day. This shift marks what Adler calls “the zone of asymmetric demand,” where reduced supply could set the stage for upward momentum.

The recent decline in exchange inflows reached its lowest point on March 23, levels not seen since May 2023 when Bitcoin was trading below $30,000. With BTC now trading at nearly three times that price, Adler believes the market has effectively absorbed previous waves of profit-taking after surpassing the $100,000 mark in late 2024. The reduced selling pressure could indicate a brewing structural supply shortage.

Adler further suggests that April and May might represent a consolidation phase—a period of stability before the next significant market move. The balance between fewer sellers and steady demand could lay the groundwork for another bullish impulse, making the current environment one to watch closely.

However, not all short-term indicators point to smooth sailing. CryptoQuant contributor Joao Wedson noted a slight uptick in exchange inflows this week. Despite the broader downtrend, some traders appear to be adopting a more neutral stance, potentially preparing for market volatility. While long-term signs remain hopeful, the near-term landscape still calls for caution.

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