Bitcoin exchange reserves fell sharply on Monday, with approximately 24,073 BTC withdrawn on a net basis, marking the largest daily outflow in seven months, according to data from Santiment.
Exchange-held Bitcoin now comprises around 6.50% of the total Bitcoin supply. The previous comparable outflow occurred on March 1. Large withdrawals from exchanges are typically interpreted as a positive signal, as reduced coin availability for immediate sale could support prices if demand remains steady.
Declining Mid-Size Inflows Signal Reduced Selling Pressure
Analysis from CryptoQuant reveals that mid-size Bitcoin inflows to major exchanges have declined even as the asset's price has increased more than 33% since mid-August. On Binance, the 7-day average of mid-size inflows fell from 4,155 BTC on August 16 to 2,648 units on October 7, a decline exceeding 36%. Bitcoin traded near $63,000 in mid-August and moved above $84,000 by the measurement date.
Coinbase Prime experienced a similar trend, with mid-size inflows declining from 1,620 BTC to 1,370 BTC, a decrease of approximately 15%. Coinbase Advanced moved in the opposite direction, with mid-size inflows rising to 4,760 BTC from 2,520 BTC, though the current level remains below 5,000 BTC. Current inflows on Binance and Coinbase Prime remain below peaks recorded in February, June, and late August.
Lower exchange inflows generally suggest reduced selling activity among mid-size investors, who do not appear to be accelerating transfers to exchanges.
Spot Bitcoin ETFs Record Positive Week
US spot Bitcoin ETFs reversed course this week following initial outflows. After Monday's net outflow of approximately $90 million, the funds recorded combined inflows of $119 million on Tuesday. BlackRock's IBIT led the recovery with $122 million in fresh inflows, while Morgan Stanley's MSBT attracted $7.84 million. Grayscale Bitcoin Mini Trust recorded the largest outflow at approximately $11 million.
