Since October 2023, there has been a persistent decline in exchange withdrawals. As per the current data from Glassnode, Bitcoin withdrawals from exchanges have reached a four-year low, numbering merely 35,000 Bitcoin. On the contrasting side, Bitcoin deposits onto exchanges maintain a higher figure, with 56,500 Bitcoins being currently accounted for.
Interestingly, from December 2023, deposits considerably outpaced withdrawals as the divergence continued to grow. Despite the fact that deposits themselves are trending downwards, they continue to overshadow withdrawals significantly. This disparity between deposits and withdrawals has swelled to one of the highest levels in years, painting a noteworthy picture of the Bitcoin market dynamics.
Before the launch of the Bitcoin ETF on Jan. 11, deposits peaked against withdrawals. This observation underscores a larger influx of coins onto exchanges, potentially corroborating the ‘sell the news’ event where Bitcoin briefly touched $49,000 before plummeting below $40,000.