Signs of Bitcoin accumulation are starting to appear as both on-chain flows and institutional ETF flows increased following a 50% drop. BTC traded at around $65,000 per CoinMarketCap data at the time of writing. The overall trading level remains stable, and supply-side pressures have decreased, according to most indicators.
Bitcoin Exchange Netflows Negative for Seven Days
Darkfost, a CryptoQuant analyst, noted that Bitcoin’s exchange netflows have been negative for seven days, indicating continuous withdrawals from crypto exchanges.
Binance, with approximately 665,000 BTC, holds about 25% of total exchange reserves, while cumulative netflows have dropped by 13,500 BTC since February 21. Within a day, 3,800 BTC left the exchange.
This prolonged period of negative netflows may indicate that investors are taking their coins off exchanges. They could be putting them in self-custody rather than planning to sell in the short term. However, Bitcoin continues trading within a range.
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Long-Term Holder Distribution Decreases
According to Glassnode data, the shift in supply dynamics is reinforced by changes in the distribution of coins held by Long-Term Holders (LTH). Chris Beamish, an analyst for Glassnode, stated that the LTH Net Position Change metric is slowing down after months of net distribution.
“Supply headwinds continue, but selling intensity is decreasing,” Beamish stated. A decline in selling intensity by long-term holders means structural overhead supply may decrease, especially after a significant price decline.
Source: X
Macro liquidity conditions are still likely to impact the price direction of BTC. However, the reduced selling intensity by this holder group suggests that forced selling from them is easing.
$1.5 Billion Flowed into Spot Bitcoin ETFs
At the same time, institutional interest in Bitcoin is increasing. According to Eric Balchunas, a senior ETF analyst at Bloomberg, U.S. spot Bitcoin ETFs received $1.5 billion in new money over the last 5 trading days.
“This is their best run in weeks,” Balchunas stated. Almost all original issuers recorded new inflows, indicating wider institutional engagement.
BlackRock’s IBIT retains the lead in terms of allocations, reinforcing its position as the largest manager in this space regarding cumulative assets. The combination of increased ETF flows and declining exchange balances is also worth noting.
If this demand continues, increased institutional absorption of circulating supply on trading venues could contribute to improved price stability.
Source: X
Why This Is Important
The combination of ETF inflows and declining exchange balances indicates that the available supply of BTC for trading may be tightening and could improve price stability.
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