Bitcoin Liquidity Crisis? Exchange Inflows Hit Lowest Level in Nearly 2 Years

Bitcoin (BTC) is experiencing a notable liquidity shift as exchange inflows reach their lowest levels in nearly two years. Analysts suggest that sell-side pressure has significantly diminished, potentially setting the stage for market stabilization.

According to Axel Adler Jr., a contributor to CryptoQuant, the average daily Bitcoin inflow to major exchanges has dropped sharply. In an April 1 post on X, he noted that BTC inflows have decreased from 81,000 BTC to just 29,000 BTC per day—a 64% decline since November. This trend indicates that fewer Bitcoin holders are selling their assets, reinforcing the idea that a long-term consolidation phase may be underway.

Exchange Data Points to Easing Sell Pressure

Bitcoin has displayed a much softer sell-side pressure over the past couple years, since it first crossed the 100,000-dollar threshold in late 2024. The notable drop in BTC exchange inflows indicates the market is now within the scope of absorbing the profit-taking waves that followed the rally.

US market’s sentiment is improving as the Coinbase Premium index, which largely measures the demand from US exchanges, has now fully recovered from negative territory. Bitcoin’s price is relatively stagnant at84,220, and maintains this price without any major breakouts expected in the future. Analysts believe the base formed by the persistently low selling pressure could support a major bullish reversal as late as mid-2025.

Exchange Activity Indicates Short-Term Trends Are Diverging

While historically low, the overall exchange inflows remain relatively constant, and the data on circulating supply shows that a change may be on the way. Recently noted by CryptoQuant contributor Joao Wedson, one of the leading exchanges, Binance, appears to be getting much lower BTC deposits from short-term holders. Binance received only 6,300 dollars worth of BTC, while it is usual for the exchange to receive about 24,700 BTC sent from other exchanges.

This behavior strongly suggests that and BTC at current price levels, which, if maintained, could lead to Bitcoin growing its price stability on the asset, and lessen chances of receiving major corrections in the following weeks. As market participants continue to monitor liquidity trends, the question remains: Is Bitcoin entering a long-term consolidation phase, or is another price surge on the horizon?