Binance’s Monthly Bitcoin Inflows Drop to Lowest Level in Years
Binance, one of the leading cryptocurrency exchanges, has seen a significant decline in monthly Bitcoin (BTC) inflows. According to data shared by CryptoQuant analyst Darkfost, the exchange recorded only 5,700 BTC in inflows, which is less than half of the 12,000 BTC average seen since 2020. This figure is also a stark contrast to the 24,000 BTC that entered the exchange during the FTX panic in late 2022.
Darkfost’s analysis revealed that every substantial deposit surge in the current cycle coincided with a local price peak. For instance, net inflows spiked above 17,000 BTC during last August’s $69,000 correction and surpassed 20,000 BTC in March when Bitcoin first reached six figures. These spikes were followed by short-term pullbacks, highlighting Binance’s role as a platform where holders convert their selling intent into market supply.
However, the recent drop in Bitcoin inflows comes at a time when the cryptocurrency is trading above $105,000 and volatility is at year-to-date lows. The 5,700 BTC inflow is also significantly lower than the 13,200 BTC that flowed into Binance when Bitcoin crossed $100,000 in December 2024.
Darkfost suggests that the current contraction signals a “holding phase,” where both retail traders and institutional investors are keeping their coins off the exchange, reducing immediate sell pressure. Typically, traders send Bitcoin to exchanges when they plan to sell, so a decrease in deposits implies fewer coins available for near-term liquidation.
This trend could pave the way for easier upside follow-through in Bitcoin’s price, as highlighted by Glassnode in a previous report. When supply on exchange order books decreases while demand remains strong, price appreciation becomes more likely.
Binance’s deposit trend is considered a barometer of the broader cryptocurrency market sentiment, as the exchange handles a significant portion of spot trading volume. The analyst chose to focus on inflows rather than outflows to filter out noise from non-selling related transfers. A rise in deposits indicates an active decision to sell, whereas withdrawals may reflect storage preferences.
Despite the positive outlook, Darkfost warned that macroeconomic uncertainty and thin liquidity could still impact prices if a sudden shock triggers new waves of deposits. He advised monitoring any increase towards or above the long-term average of 12,000 BTC as a potential sign of renewed distribution in the market.
In conclusion, the recent decline in Bitcoin inflows on Binance signals a shift in market dynamics, with traders and investors choosing to hold onto their coins rather than sell. This trend could have implications for price stability and future market movements in the cryptocurrency space.