Bitcoin is showing signs of shaking off its recent weakness. After a dip to $108,600 on Tuesday, BTC quickly rebounded past $112,000. This recovery is being backed by a critical on-chain metric: a dramatic drop in the flow of BTC onto exchanges, suggesting that a major source of selling pressure is finally drying up.
A Key Metric Hits Record Lows
According to analyst CryptoOnchain, the 30-day moving average of Bitcoin exchange inflows has fallen to its lowest level since May 2023. This metric, which tracks how much BTC is being sent to exchanges (typically to be sold), recently hit an all-time low.
- The Trend: Inflows spiked in April during U.S. tariff announcements and again after Bitcoin’s all-time high as investors took profits. They have now retreated dramatically.
- The Significance: CryptoOnchain called this decrease “significant,” directly linking the reduction in sell pressure to Bitcoin’s recent price rebound to $111,000.
Simply put, fewer coins are being moved to exchanges to be sold. This shrinking supply of sellable Bitcoin is a classic bullish signal that often precedes a price recovery.
US Investors Are Tapping the Brakes
The data reveals a crucial detail: the trend is especially pronounced on Coinbase, a exchange dominated by U.S. retail and institutional investors. This group has been a primary driver of the recent rally, and their decision to hold rather than sell is a powerful vote of confidence.
This suggests that both retail and institutional investors are likely holding their assets, anticipating higher prices in the mid-term. This behavior reduces the available coins for sale, creating natural upward pressure on Bitcoin’s price.
What This Means for Bitcoin’s Price
For investors, this is a strongly optimistic development. The combination of falling exchange inflows and steady holding behavior indicates that the recent sell-off may be exhausting itself.
When selling pressure eases and supply on exchanges shrinks, it doesn’t take much new buying demand to push the price significantly higher. This on-chain data supports the analyst’s prediction of a mid-term BTC uptrend, as the foundation for the next leg up appears to be solidifying.
