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BTC Exchange Inflows Decline, Confidence Grows

Posted: Sat Sep 27, 2025 6:21 pm
by Chawla Solutions
According to CryptoQuant data, the 7-day moving average of Bitcoin inflows to exchanges has been steadily declining throughout recent months. This metric tracks how much BTC is being deposited into exchanges, and its downward trend carries important implications for market sentiment.

Why It Matters
When Bitcoin inflows to exchanges rise, it often signals potential sell pressure, as investors prepare to liquidate assets. Conversely, declining inflows suggest that holders are increasingly confident in keeping BTC in cold wallets or DeFi strategies, reducing immediate supply available for sale.
The latest readings show a consistent drop in inflows even as Bitcoin’s price hovers near $113K. This indicates that investors are not rushing to take profits despite elevated levels, reinforcing the narrative of long-term conviction.

Market Implications
• Lower exchange balances reduce the risk of sudden sell-offs.
• A tighter supply on exchanges can create conditions for price support and potential upward momentum.
• Growing use of self-custody highlights a maturing market, with holders prioritizing security over quick liquidity.

Conclusion
The decline in BTC exchange inflows is a bullish signal for long-term stability. With fewer coins hitting exchanges, market participants demonstrate trust in Bitcoin’s resilience, suggesting that the current phase may be one of accumulation rather than distribution.