Recent figures show that exchange inflows for major crypto assets have significantly dropped. The amount of coins deposited into the exchange wallets represents the exchange inflow for an asset.
Data from Glassnode, an on-chain analytics firm, featured the trends for cryptocurrencies such as Bitcoin, Ethereum, BUSD, USDT, USDC, and DAI. According to the data, the exchange inflow for major assets has been hovering at an extremely quiet $2.3 billion. Notably, this is about $9.9 billion lower than the peak inflow experienced during the May 2021 sell-off.
Exchange inflows across major assets are currently at a low point in the cycle, sitting at $2.3 billion. This indicates a significant decrease in the number of deposits being made to exchanges compared to the high levels experienced during the 2021 Bull Market, where the peak inflow reached $12.2 billion.
According to the data, it is notable that whenever the inflow across major assets increases, it causes a fall in the price of Bitcoin (USD). This was observed in 2021 during May and June when the inflow across major assets was $12.2 million. Similarly, a similar trend occurred when the exchange inflow across major assets was $11.2 million, resulting in a massive fall in the price of Bitcoin.
On the other hand, it is also observed that whenever the exchange inflow across major assets declines, there is always a considerable price movement in an upward direction.
Currently, the exchange inflow across major assets is $2.3 million, which is significantly lower than its all-time high of around $12.2 million. The sentiment of the overall crypto market is bullish, based on historical price movements. Furthermore, major asset management firms are also showing interest in Bitcoin spot ETFs, which will attract more investors to the cryptocurrency market.
Recently, MicroStrategy bought around 12,333 Bitcoins worth around $347 million. Additionally, in the last few weeks, it has been observed that Bitcoin has been trading in a tight range, and sharks and whales have accumulated 71,000 Bitcoins worth around $2.15 billion.
This means that overall, the sentiment of the crypto market is bullish, based on historical price movements. Furthermore, major asset management firms are also showing interest in Bitcoin spot ETFs, which will attract more investors to the cryptocurrency market.