Bitcoin exchange balances have seen a significant increase of $4.1 billion in the last 30 days, according to data from Glassnode. This surge of 64,000 BTC comes after a period of decline in exchange-held Bitcoin that started earlier in 2024. The decline began after the launch of spot Bitcoin ETFs in the US and intensified post-halving in April 2024.
Analyzing the data, we can see that Bitcoin exchange balances started to rise towards the end of 2023, reaching a peak in late January 2024. This coincided with a local price low following the fading of the ‘sell the news’ narrative around Bitcoin ETFs. Traders likely moved their Bitcoin onto exchanges to take advantage of the price rally that had been happening since October.
However, as prices fluctuated and peaked again in March and May 2024, there was a noticeable outflow of Bitcoin from exchanges. This indicated a shift towards holding assets in personal wallets as a long-term investment strategy.
The recent reversal, with a significant inflow of Bitcoin back to exchanges, suggests that traders are either selling into the slight market decline or repositioning their holdings to take advantage of current price movements. This movement of Bitcoin onto exchanges often precedes increased trading activity, whether for profit-taking or in anticipation of market shifts.
Since July 14, there has been a recent slight reversal of the trend, with roughly 1,000 BTC leaving exchanges. This could indicate a shift in trader behavior or strategy in response to market conditions. It will be interesting to see how this trend evolves in the coming weeks and what it could mean for the overall Bitcoin market.