Bitcoin Supply Setup Tightens as Wholecoiner Exchange Transfers Plummet

Bitcoin's exchange flows from large holder wallets have reached historic lows, indicating a tighter supply setup in the market.

Data from Darkfost shows that wholecoiner transfers to exchanges on Binance have plummeted by over 60% compared to last year. Global transfers of at least one BTC to exchanges have also declined significantly, reaching levels not seen since 2018.

The trend suggests that long-term holders are stepping back from selling and instead choosing to hold onto their coins for longer periods. This shift in market structure is likely due to the increasing popularity of spot Bitcoin ETFs, which provide investors with an alternative way to gain exposure to the cryptocurrency without having to buy it directly.

The derivatives market is also showing signs of a potential squeeze, with funding rates turning negative as open interest climbs and traders build short exposure around key resistance levels. However, the next move in Bitcoin's price still depends on whether $75,000 gives way.