Bitcoin (BTC) mid-size wallet inflows to Binance fell to 3,000–4,000 BTC, marking a multi-year low in sell-side activity from this cohort.
This coincides with Coinbase recording about 8,500 BTC in inflows from similar wallets on April 19, while other exchanges saw much smaller flows. Binance exchange Bitcoin inflows have also fallen to 2023 levels, but how is this significant to today’s market?
Binance BTC inflows cool sharply to 2023 levels
CryptoQuant data classifies mid-size wallets as the entities holding roughly 100–1,000 BTC, often linked to active traders and smaller institutions. These wallets tend to move coins to the exchanges during distribution periods, making their inflows a useful proxy for near-term selling intent.
Crypto analyst Amr Taha noted that seven-day average Bitcoin inflows from this cohort into Binance have dropped to 3,000–4,000 BTC. This remains well below the deposits observed during April to May 2023, which ranged from 5,500 to 6,000 BTC.
The lowered inflow levels suggest reduced immediate sell-side pressure, as fewer coins are being positioned on the exchange, although inflows alone do not translate into active selling.
The chart shows no comparable surge from retail participants (1-100 BTC) either, with smaller wallets contributing limited inflows of less than 300 BTC on Tuesday. This indicates a contained flow profile rather than broad-based selling pressure.
Related: Bitcoin metrics line up bull signals with $78K the BTC price level to beat
Bitcoin flows on Coinbase dominate
The distribution of BTC inflows across exchanges provides another perspective. Data from CryptoQuant shows that mid-size investor inflows into Coinbase reached about 8,500 BTC on April 19, approaching levels last seen after the FTX exchange collapse in November 2022.
BTC activity across other exchanges remained relatively muted. Amr Taha noted that a broad distribution phase would typically reflect synchronized inflows across multiple exchanges, which is not evident in the current data.
A similar spike on Coinbase was observed on Jan. 14, shortly before Bitcoin declined from $95,000 to below $67,000 in February. However, the current conditions differ, as exchange inflows appear fragmented rather than market-wide, suggesting mixed sentiment rather than coordinated distribution.
Data from Bitcoin researcher Axel Adler Jr. also highlights a deeper shift in supply dynamics. Bitcoin’s 30-day net flow dropped to -300,000 BTC in March from +94,000 BTC in February, signaling a strong withdrawal phase. The metric stands near -98,000 BTC as of April 21, with outflows continuing at a slower pace.
Adler Jr. added that exchange reserves have declined for seven consecutive weeks, falling by over 105,000 BTC since early March. Notably, even during the April 2 pullback toward $67,000, there was no significant return of coins to exchanges.
Related: Inside the ‘fake police raid’ that forced a $1M Bitcoin transfer
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