In recent weeks, the cryptocurrency market has witnessed a remarkable rise in prices of major assets. However, interestingly, investors do not appear to be hastily capitalizing on these gains, as demonstrated by the flow levels recorded on crypto exchanges.
A recent report from CryptoQuant highlights a substantial decline in inflows and deposits for Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP. Despite the prices approaching or even reaching all-time highs (ATHs), it seems that investors are more inclined towards holding their assets rather than selling.
Selling Pressure on a Low
On May 22, Bitcoin hit an ATH of $111,861. When the digital currency previously surged past $100,000 in November 2024, dailybitcoin inflows to exchanges were around 121,000 BTC. However, the current daily inflow has plummeted to approximately 22,000 BTC.
This drop in inflow levels often indicates decreased selling pressure, as higher inflows correlate with increased intent to sell. Moreover, individual deposits to trading platforms have seen a stark decline from 98,000 in November to merely 29,000 today, further illustrating that fewer investors are willing to sell despite the price surge.
Ethereum is experiencing a similar trend, with inflows to exchanges decreasing by 70% from 3.2 million ETH in November to about 1 million ETH currently. The number of individual daily deposits has also dropped significantly, from a peak of 135,000 ETH in early April to just 15,000 currently.
XRP’s inflows have also dwindled, particularly after Ripple, the coin’s founding company, settled its protracted legal struggle with the U.S. Securities and Exchange Commission. Daily XRP deposits have fallen drastically from 4 billion in late March to only 46 million. Additionally, deposits have decreased by an astonishing 99.5%, dropping from 2.1 million in December to just 9,000 today.
The significant decreases in deposits among Bitcoin, Ethereum, and XRP reveal a shifting investor sentiment, leaning towards a more optimistic outlook.
Exchange USDT Reserves Hit ATH
While Ethereum and XRP have not recently reached new ATHs, both assets have seen significant growth, with data from CoinMarketCap indicating monthly increases of 55% and 11%, respectively.
As the broader cryptocurrency market maintains its positive momentum, the inflows of Tether (USDT) into exchanges have continued to escalate, reaching a record high of $46.9 billion in total reserves.
“The growth in stablecoin balances signals increasing market liquidity, which is typically supportive for digital asset prices,” stated CryptoQuant.
The insights presented in this analysis highlight a critical aspect of the current crypto landscape – investors are exhibiting a preference for holding their assets, contributing to improved sentiment in an otherwise volatile market.
