Bitcoin exchange inflows fall 15.5% as whales pause near $79K: Is demand falling?

Since early August, Bitcoin’s market structure has strengthened as prices rose while exchange deposits declined. The price of Bitcoin [BTC] increased by approximately 25%, from approximately $63,000 to approximately $79,000.

In that time frame, most of the buying interest was coming from larger participants.

Conversely, the amount of mid-sized coins going into Binance, Coinbase Pro, and Coinbase Prime decreased by an estimated 15.5 percent during this time.

Overall there were fewer mid-sized coins entering exchanges, which would have added additional sellable coins into their respective order books.

The largest decrease was at Binance, where the number of mid-sized coins going into their platform dropped almost 30% from 4,390 BTC to 3,080 BTC. This indicates that larger, mid-sized coin investors are choosing to hold rather than sell their coins during the increase in price.

This reversal produced a 1,160 BTC swing between both venues. As such, it appears that large mid-size investor activity is shifting between different exchanges. However, no increase in overall selling pressure was evident.

Hence, if the low inflow levels continue, they will help support current price levels. However, any continued increases in price will need to be sustained through ongoing demand.