Bitcoin exchange inflows surged on July 15 as BTC skyrocketed to its most recent ATH

CryptoQuant data on July 15 showed that Bitcoin exchange inflows rose from 54.151K BTC to 63.1K BTC in 24 hours, an increase of about 3%. The spike came as Bitcoin prices peaked at $123.218K on July 14, marking the coin’s most recent ATH. 

The data revealed that BTC exchange reserves jumped +0.91% to 2.265M, following the uptick in BTC exchange inflows in the past 24 hours. Bitcoin exchange netflow was positive, increasing 3.73% to 21.81K BTC. There was also a 2.24 Bitcoin exchange inflow mean, representing a 3.64% rise.

The top 10 exchange inflow metric also showed an increase of 3.17% to 3.656K BTC. Bitcoin exchange depositing transactions inched up 1.03% to 43.552K as BTC depositing addresses also went up 1.13% to 2.29K. Bitcoin exchange inflows were at 83.99K as of publication, an increase of 2.37% from yesterday. 

CryptoQuant analysis suggests bullish whale activity

A CryptoQuant analyst claimed that a surge in exchange inflows indicated a “local top” likely to result in a “healthy price correction” or near-term consolidation. The analyst also believes that the spike in BTC exchange inflows (especially to CEXs) suggested short-term profit-taking whale activity. Another CryptoQuant contributor pointed out a wallet dormant for over 14 years with 80K BTC that had just offloaded about 20K BTC, much of which ended up in CEXs.

The analyst added that the recent positive movement in BTC exchange inflows was a classic pattern following parabolic rallies. Profits were realized, weak positions exited, and BTC prices found a new base. The market structure generally remained “largely bullish” despite looming signs of price correction. Long-term holders also sat tight on their BTC bounty. 

Another CryptoQuant contributor partly agreed that the surge in BTC deposits to exchanges was likely due to activity by large-scale investors. Whales reportedly deposited 1.8K BTC to Binance in one day, with over 35% of the transactions clocking over $1 million, noted the contributor. The analyst claimed that whales leveraged the deep liquidity in exchanges to speculate, possibly for profit-taking. 

The contributor also concluded that the surge was likely due to two scenarios. First, investors likely sat on “healthy profits” and sought to make some profit. Secondly, investors possibly aimed to leverage Binance’s liquidity to open positions or hedge amid heightened market volatility. Julio Moreno, the Head of Research at CryptoQuant, believes that rising BTC exchange inflows precede price volatility. 

An independent crypto analyst claimed that the wave of BTC hitting exchanges usually suggested that wallets were preparing to sell. The analyst pointed out a similar spike in March 2024, followed by a drop of 8-12% within 48 hours. Large holders likely sent BTC to “spot venues” to rotate or liquidate.

Daily BTC exchange inflow drops

CryptoQuant’s Moreno said on July 11 that daily BTC exchange inflows fell to their lowest since April 2015, plummeting to 18K BTC. He also revealed that large Bitcoin holders were sending fewer coins to exchanges, with the amount coming from this group falling to only 7K BTC, down from 62K BTC in November last year.

Moreno emphasized that the increase in BTC price resulted in low selling pressure. He pointed out that whale activity had dropped, but mentioned that the trend was common across the crypto industry. Moreno also observed that the current BTC rally was much calmer than the early 2021 and late 2017 bull runs.  

CryptoQuant research suggested that fewer daily BTC flows from large and small holders to exchanges signaled less selling pressure. It also implied that the market had yet to enter “overheating mode.” 

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More