Bitcoin transactions to and from exchanges have seen a steady decrease as the price of BTC continues to fall.
Bitcoin has seen one of its biggest corrections in recent memory as the top crypto declined 44% this week. The sell-off has had a dramatic impact on the outflow and inflow of BTC on exchanges.
According to Crypto Quant, inflows and outflows of BTC on exchanges have declined over the past several days. The decline in BTC transactions appears to coincide with the decline in BTC price.
Exchange inflows declining
The number of BTC addresses making inflow transactions to exchange wallets has dropped to 25,000. The lowest seen in 2021. The previous daily high was set just over a week ago, with 96,000 inflow transactions. That record high was set the same day BTC hit a new all-time high.
Exchange outflows also declining
The number of BTC addresses making outflow transactions from all exchanges has also seen a major drop in activity. Crypto Quant shows that over 30,000 transactions were done on May 22. This is down from the recent high set on May 10, which saw over 160,000 addresses making outflow transactions.
May 21 saw the lowest daily outflow day with 20,500 outflow transactions from addresses. A yearly low for 2021.
Exchange BTC reserves increasing
Inflows and outflows of BTC from exchanges has seen a sharp decline as BTC continues to see bearish market behaviour. However Crypto Quant also shows that BTC reserves on exchanges are slowly increasing.
The amount of BTC held in all exchanges’ wallets has seen an increase since hitting a yearly low in late April. Over 2.44 million BTC is currently held by exchanges, up from 2.39 million one month ago. An increase of 54,284 BTC, or $1.92 billion at current BTC prices.