Bitcoin Inflows Plummet to 2020 Levels Amid Price Consolidation

Bitcoin's recent price consolidation has led to a significant drop in inflows into exchanges, with the 30-day moving average falling to around 3,998 BTC – a level last observed over six years ago in 2020. This trend suggests that investors are not panicking and are instead choosing to hold onto their stash.

According to data from CryptoQuant's verified author, Darkfost, the decline in inflows is notable, with daily deposits on Binance falling to around 3,988 BTC – roughly three times lower than typical market conditions. This suggests that most holders are not willing to sell their assets and are instead opting for long-term holding in self-custody wallets.

Historically, after the market peaks or when macro uncertainties kick in, Bitcoin holders have sold more than they do now. However, this time around, investors seem to be waiting for a clearer direction before making significant moves, reducing immediate selling pressure. This behavioral shift reflects a structural change in how participants respond to uncertainty.

The decline in inflows could also be attributed to the increasing popularity of alternative channels, such as institutional products like Bitcoin spot exchange-traded funds (ETFs). These products allow users to easily gain exposure or sell their assets without needing to move them directly onto exchanges.