Bitcoin has seen its largest net inflow to exchanges since July 2024, marking a key shift in on-chain dynamics. Such inflows suggest increased distribution and profit-taking, as more BTC becomes available for trading.
Historically, similar exchange inflow spikes have often preceded deeper corrections. This week’s data hints that major players, potentially funds or institutions, are offloading BTC near all-time highs, managing their risk exposure.
However, this capital rotation could also fuel an altcoin rally, with demand flowing into alternative assets. As exchange supply rises, market volatility may increase, especially during demand surges. Traders should keep a close eye on this metric, as it could foreshadow the next major move.
Written by ShayanMarkets
