On-chain data shows that bitcoin exchange inflows have remained low recently, a sign that whales have not been interested in selling.
bitcoin inflows for Binance and OKX have remained low recently
As CryptoQuant founder and CEO Ki Young Ju noted in a twitter.com/ki_young_ju/status/1778596992924700909″ target=”_blank” rel=”noopener nofollow”>mail On x, btc deposits for cryptocurrency exchanges Binance and OKX have been low recently.
The indicator of on-chain interest here is “exchange flow,” which tracks the total amount of bitcoin being transferred to wallets attached to centralized exchanges.
When the value of this metric is high, it means that investors are depositing a large amount of tokens on these platforms right now. As one of the main reasons holders would transfer to exchanges is for selling purposes, this type of trend can have bearish implications for the asset.
On the other hand, the fact that the indicator is low implies that these platforms are not currently seeing as many deposits. Depending on the trend in the opposite metric, currency outflow, said value can be bullish or neutral for the price of the cryptocurrency.
Now, here is a chart showing the trend in bitcoin exchange inflows for Binance and OKX over the past few years:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/04/Bitcoin-Exchange-Deposits-Stay-Low-Whales-Not-Selling.jpeg" alt="bitcoin Binance and OKX Exchange entry” width=”1396″ height=”944″/>
The value of the metric appears to have been low in recent days | Source: twitter.com/ki_young_ju/status/1778596992924700909/photo/1" target="_blank" rel="noopener nofollow">@ki_young_ju on x
Binance is the world's largest exchange in terms of trading volume, while OKX generally ranks second behind it in the same metric. While these two platforms certainly do not cover the entire cryptocurrency market, user behavior on them would still provide an estimate on the broader pattern.
As you can see from the chart, currency inflows for Binance and OKX have been at relatively low levels for quite some time now. When btc saw its rally towards a new all-time high (ATH) at the beginning of the year, deposits saw a slight bullish trend, but recently, inflows fell back to low values.
This would suggest that the appetite to sell, particularly from whales, simply has not been there for the cryptocurrency. Even the breaking of the ATH could only attract a few large users of the platforms to drive the sale.
The behavior contrasts with, for example, that of the second half of the 2021 bull market, as can be seen in the chart. The rally back then had not only seen some exceptional spikes in capital inflows, but benchmark inflows had also generally been higher than recent levels.
Interestingly, the two main highs of the rally also coincided quite well with extremely large capital inflows, so following this pattern, the current rally may not be close to a high yet.
However, it remains to be seen whether this same trend will continue during this cycle, given the new emergence of spot exchange-traded funds (ETFs).
ETFs have provided an alternative means of gaining exposure to the asset, meaning that cryptocurrency exchanges may no longer have the same relevance in the market.
btc Price
At the time of writing, bitcoin is trading around $70,400, up more than 5% in the last seven days.
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Looks like the price of the coin has mostly moved sideways recently | Source: BTCUSD on TradingView
Featured image by Thomas Lipke on Unsplash.com, CryptoQuant.com, TradingView.com chart
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