- Bitcoin’s exchange inflows have dropped to 29,000 BTC, easing selling pressure and supporting a stable market above $82,500.
- A supply squeeze may drive Bitcoin higher as fewer sellers emerge, signaling potential consolidation before the next bullish phase.
- The market absorbs profit-taking without sharp drops, with declining inflows indicating investor confidence at current price levels.
Bitcoin enters into a critical stage when the pressure to sell at large exchanges becomes weaker. According to crypto analyst Axel, the exchanges’ inflows have declined from a daily rate of 81,000 BTC to 29,000 BTC. The change shows that decreasing sales are further moving the market in favor of buyers. The current price of Bitcoin stands at $82,500.
Declining Exchange Inflows and Market Stability
Bitcoin exchange inflows have an influence on price movements. As evidenced in the data, inflows in the initial part of 2023 have been very volatile and hit well in excess of 100,000 BTC daily. Bitcoin was in the sub-$30,000 region at the time, and prices began to appreciate as inflows diminished. Bitcoin traded in the $40,000 and up range in the initial part of 2024.
Bitcoin price increased at a high rate in March 2024, reaching past $60,000. Exchange inflows peaked at 81,000 BTC and led to profit-taking. Subsequent inflows dipped. Another increase in inflows occurred later in 2024, at 60,000 BTC as Bitcoin traded close to $40,000.
Bitcoin’s Supply Dynamics in Early 2025
Bitcoin’s exchange inflows have continued to decline this year too. The current level of 29,000 BTC is similar to support zones observed in 2023. This reduction suggests that major sell-offs have diminished, and selling pressure is easing. Buyers appear comfortable at present price levels, reducing the possibility of sharp corrections.
Moreover, the market is changing into a phase of asymmetric demand. With fewer sellers, a supply squeeze could intensify upward price movements. This situation prepares for Bitcoin to enter a consolidation phase between April and May. Such a period of stability often precedes the next bullish impulse.
Bitcoin’s recent performance suggests that the market is absorbing profit-taking without severe downturns. The declining exchange inflows indicate that fewer investors are willing to sell at current prices. Hence, a prolonged supply shortage could emerge, supporting higher valuations in the coming months.
