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Crypto Potato 2025-05-25 11:29:46

Crypto Exchanges See Low Selling Pressure Even as Prices Surge: CryptoQuant

Over the last few weeks, major crypto assets have witnessed a surge in prices, but investors have not been scrambling to realize profits. This is evident in the level of flows recorded by crypto exchanges. According to a report by CryptoQuant, exchanges are seeing a sharp decline in inflows and deposits for bitcoin (BTC), ether (ETH), and Ripple’s XRP. This happens as prices near and record all-time highs (ATHs), suggesting investors are more intent on holding than selling. Selling Pressure on a Low On May 22, BTC hit an ATH of $111,861. When the digital asset surged close to and surpassed $100,000 in November 2024, the number of bitcoins flowing into exchanges daily stood at 121,000. This time, however, daily bitcoin inflows to exchanges have plunged to roughly 22,000 BTC. Higher exchange inflows have often signaled increased selling pressure, so low inflow levels among investors signal reduced intent to sell. Also, the number of individual deposits to trading platforms has plummeted from 98,000 in November to just 29,000 currently. This shows that fewer investors are selling despite the rally in prices. ETH is also seeing low inflows to exchanges. The number of coins moving into these trading venues daily has fallen 70% from 3.2 million ETH in November to roughly 1 million ETH now. Individual daily deposits are not exempted, as they have dipped from a recent peak of 135,000 ETH in early April to 15,000 currently. Similarly, XRP exchange inflows have dropped, especially since the coin’s founding company, Ripple, settled its years-long legal battle with the United States Securities and Exchange Commission. Daily XRP deposits have fallen from 4 billion in late March to 46 million. Deposits, on the other hand, have also declined 99.5% from 2.1 million in December to 9,000 today. The decline in BTC, ETH, and XRP deposits shows improving investor sentiment. Exchange USDT Reserves Hit ATH Although ETH and XRP have not hit new ATHs recently, they have recorded notable growth. Data from CoinMarketCap shows that both assets are up 55% and 11% monthly. While the broader crypto market continues to gain positive momentum, the inflows of Tether (USDT) into exchanges have continued to grow. The total USDT reserves on exchanges have now hit an all-time high of $46.9 billion. “The growth in stablecoin balances signals increasing market liquidity, which is typically supportive for digital asset prices,” stated CryptoQuant. The post Crypto Exchanges See Low Selling Pressure Even as Prices Surge: CryptoQuant appeared first on CryptoPotato .

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