Bitcoin Whale Selling Pressure Eases as Binance Inflows Drop and ETF Demand Weakens

Bitcoin sell pressure eases, but weak ETF demand and deleveraging keep market momentum subdued.

Bitcoin continues to trade within a defined range, holding between $62,000 and $75,000 despite a difficult macro backdrop. Price stability has persisted even as sentiment remains cautious across the broader crypto market. 

Current levels place Bitcoin roughly 47% below its all-time high, reflecting an ongoing consolidation phase after the previous cycle peak. Within this context, on-chain data points to a meaningful shift in large holder behavior.

Bitcoin Selling Pressure Eases as Whale Inflows Fall to 1,600 BTC Daily

As spotted by market expert Darkfost, whale activity on Binance has slowed in recent weeks. Earlier in the year, large holders actively sent Bitcoin to exchanges, signaling strong sell-side pressure. 

That trend intensified as BTC approached the $60,000 level, culminating in a major spike on February 4. On that day alone, more than 11,800 BTC flowed into Binance, marking one of the largest single-day inflows in recent months.

Sustained deposits pushed the monthly average significantly higher. Daily whale inflows climbed from around 1,000 BTC to nearly 4,000 BTC by late February. Such activity confirmed a strong distribution phase, with large holders actively offloading positions into market strength.

Recent data now shows a clear cooling in that behavior. The 30-day moving average of whale inflows has dropped to approximately 1,600 BTC per day. Reduced transfer volumes suggest that aggressive selling has eased. Large players appear to be shifting away from heavy distribution toward a more neutral positioning.

Institutional Bid Weakens: BTC ETFs Record Outflows Amid Market Deleveraging

Despite easing sell pressure, demand-side weakness remains evident. Bitcoin spot ETFs, which previously absorbed large volumes of supply, have recently recorded periods of net outflows. 

Monthly flows have become inconsistent, while total net assets have declined from recent highs. Generally, this points to weaker institutional participation compared to earlier phases of the rally.

Image Source: SoSoValue

Lack of strong ETF inflows raises concerns about absorption capacity. Reduced whale selling alone does not guarantee upward momentum without sufficient demand stepping in. Current conditions suggest a market lacking a strong institutional bid.

Open interest across futures markets has declined from recent peaks, signaling ongoing position unwinding. At the same time, funding rates have normalized to neutral or slightly negative levels. These readings point to reduced speculative positioning and less crowded long exposure.

Image Source: CryptoQuant

Such conditions reflect a broader deleveraging phase. Excess leverage has been flushed from the system, lowering the risk of sharp liquidation-driven moves. Market structure now appears more balanced, though less aggressive in terms of risk appetite.

Meanwhile, exchange reserves continue to trend downward. Total Bitcoin held on exchanges has fallen to approximately 2.7 million BTC. This ongoing decline reflects steady outflows into long-term storage, limiting readily available supply.

Shrinking exchange balances provide structural support over time. While short-term demand remains uncertain, reduced supply on exchanges could tighten conditions if buying interest returns.

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