Bitcoin Exchange Inflows Hit Multi-Year Lows as Sell-Side Pressure Eases

Bitcoin's supply dynamics are shifting as inflows from mid-size wallets to the Binance exchange have plummeted to levels not seen since 2023. Mid-size wallets, defined as those holding between 100 and 1,000 BTC, typically serve as a proxy for the intentions of active traders and smaller institutional players. A decrease in these deposits often signals a reduction in the intent to sell in the near term. According to data from CryptoQuant, seven-day average inflows from this cohort into Binance have fallen to between 3,000 and 4,000 BTC, well below the 5,500 to 6,000 BTC range observed during April and May 2023. Retail activity remains similarly muted, with wallets holding 1-100 BTC contributing fewer than 300 BTC in inflows on a recent Tuesday, suggesting a contained flow profile. In contrast, Coinbase recorded a spike of approximately 8,500 BTC from mid-size wallets on April 19. However, analysts note that the lack of synchronized inflows across multiple exchanges suggests that this is not a broad distribution phase, which would typically precede a significant price decline. The current fragmented activity suggests mixed sentiment rather than a coordinated sell-off. Broader supply metrics further support a trend of accumulation. Bitcoin's 30-day net flow shifted from +94,000 BTC in February to -300,000 BTC in March, with the current metric sitting near -98,000 BTC as of April 21. Furthermore, exchange reserves have declined for seven consecutive weeks, with over 105,000 BTC leaving exchanges since early March, indicating a strong withdrawal phase.