- Altcoin exchange flows have dropped to $1.6B monthly, indicating quiet accumulation that often precedes strong bullish rallies.
- Bitcoin’s historical volatility and exchange flow patterns point to a matured market phase with sustained price levels near $100K.
- Analysts are closely tracking Solana, VeChain, Arbitrum, and Injective as capital rotation signals a likely altcoin rally ahead.
According to CryptoBusy, Altcoin exchange flows have plunged to $1.6 billion per month, falling below the 12-month average. This decline often signals a market shift. Historically, similar dips have preceded explosive altcoin rallies. Traders tend to accumulate quietly during low-flow periods. Crypto market veterans now believe another bull phase may be close. Moreover, the drop in volatility supports this potential upside. Hence, analysts are closely monitoring specific altcoins like Solana, VeChain, and Sui.
The positive view is further supported by Bitcoin’s chart. Its price trend has displayed patterns of instability since April 2022. Bitcoin dropped from $45,000 to about $20,000 in early 2022. Exchange flows were comparatively steady in spite of the decline. The market went into a deep bear phase in late 2022 and early 2023. Bitcoin’s price ranged between $15,000 to $25,000, while exchange flows fluctuated moderately but steadily.
Exchange Flows Mirror Price Momentum
In early 2023, the tide shifted. Bitcoin gained momentum, climbing steadily toward $30,000. Notably, exchange flows rose alongside this uptrend. Activity picked up further during the second half of the year. Q4 2023 to early 2024 brought a parabolic BTC move. The price jumped from $30,000 to over $70,000. This explosive move triggered the highest exchange flow volumes on record.
Source: CryptoBusy
Exchange flows peaked in March and April 2024, surpassing 110,000 units. These were the most active months in recent history. During this period, Bitcoin also reached new all-time highs. Additionally, this bullish cycle extended beyond Bitcoin, lifting many altcoins. As flows surged, investor appetite returned across the board.
Market Eyes New Phase of Accumulation
Following the peak, exchange activity cooled throughout the rest of 2024. However, BTC managed to sustain levels well above previous cycles. By early 2025, the price stabilized near $100,000. Consequently, this suggests a possible shift to a more mature and stable market phase. Altcoin flows, meanwhile, have shrunk dramatically.
The drop below the 12-month average hints at ongoing altcoin accumulation. Traders now speculate that a major rally may follow. Hence, CryptoBusy and others are eyeing projects like Injective, Arbitrum, NEAR, and Peaq. With capital rotation on the horizon, the next leg could be explosive.
