Essential Insights
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Investor Behavior: Major crypto assets like BTC, ETH, and XRP are seeing low inflow levels to exchanges, indicating that investors are more inclined to hold than sell, despite recent price surges.
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Selling Pressure Decline: Daily BTC inflows have dropped from 121,000 to 22,000, while ETH inflows fell from 3.2 million to about 1 million, reflecting a significant reduction in selling intent among investors.
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XRP Situation: Since Ripple’s legal settlement, XRP deposits have plummeted 99.5%, from 2.1 million to just 9,000, highlighting a shift in investor sentiment.
- Liquidity Growth: Tether (USDT) reserves on exchanges have reached an all-time high of $46.9 billion, indicating increased market liquidity, which is beneficial for digital asset prices.
Crypto Exchanges See Low Selling Pressure Even as Prices Surge, Says CryptoQuant
Over recent weeks, major cryptocurrencies have experienced significant price increases. Yet, surprisingly, investors are not rushing to cash out. This trend highlights a shift in investor behavior.
According to a report from CryptoQuant, bitcoin (BTC), ether (ETH), and Ripple’s XRP are seeing a notable decline in inflow to exchanges. While bitcoin reached an all-time high of $111,861 on May 22, daily inflows now sit at about 22,000 BTC. This marks a stark drop from the 121,000 BTC recorded in November 2024. Such low inflow levels indicate that investors prefer to hold rather than sell, reflecting growing confidence in the market.
Ether is following a similar pattern. Daily inflows into exchanges have plummeted 70%, from 3.2 million ETH in November to approximately 1 million ETH now. The number of individual deposits has also dropped from 135,000 ETH earlier this year to just 15,000. This suggests that despite price rallies, fewer investors are liquidating their positions.
XRP, too, has seen a drop in exchange inflows. Following Ripple’s recent legal victory over the U.S. Securities and Exchange Commission, daily XRP deposits fell from 4 billion in March to just 46 million. Furthermore, individual deposits have decreased 99.5%, from 2.1 million in December to only 9,000 today.
These trends point to an improvement in investor sentiment. As long-term holders emerge, the market adjusts to a more stable environment, enabling innovation and development in technology.
Interestingly, Tether (USDT) inflows have been on the rise. Currently, USDT reserves on exchanges have reached an all-time high of $46.9 billion. This increase signals growing market liquidity, which typically supports higher digital asset prices. According to CryptoQuant, a boost in stablecoin balances often precedes further advancements in cryptocurrency technology.
As the crypto market continues to evolve, this retention of assets suggests that many investors are banking on the long-term value of their holdings, rather than short-term gains. The evolving landscape presents both challenges and opportunities for tech development within the cryptocurrency space.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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