Bitcoin exchange deposits hit 8-Year Low, HODL sentiment builds

The global digital assets market took a step back on Thursday morning as Bitcoin (BTC) dropped below the $92K mark. This selloff comes after a steady and higher run seen earlier in the week. This is turning out to be investors’ classic profit-taking behavior. However, data suggests that BTC investors are hodling strong as deposit activity is shooting up.

The cumulative crypto market cap dropped by more than 2% over the last day to stand at $2.88 trillion. Its 24-hour trading volume took a dip of 22% to stand at $104.8 billion. The crypto fear and greed index is shifting towards the greed territory after spending weeks in fear.

BTC selling pressure drops 4x since 2022

As per the data, the number of addresses depositing Bitcoins to exchanges has steadily declined since 2022. Its 30-day moving average traced back to 52K addresses while compared to the 365-day level of 71K. Cryptoquant analysts suggest that over the past 10 years, the most common distribution has been around 92K addresses, and the current number of addresses has fallen back to the level of December 2016.

Alex, in an X post, indicated that the emerging trend is bullish as investors have reduced the BTC sales by 4 times over the last three years. This implies that HODL sentiment is growing with dropping selling pressure, building a strong foundation for a surge ahead.

Santiment data shows that Bitcoin’s key stakeholders are made up of wallets holding between 10 and 10K BTC. These whale wallets currently hold 67.77% of the entire supply of crypto’s top market cap. It added that during the April volatility, these wallets continued to accumulate more and now have loaded over 53.6 BTC since March 22nd.

In this process, Bitcoin’s correlation with the S&P 500 dropped to 0.77 now, while it stood at 0.88 in late 2024. The correlation with the Nasdaq Composite has been reduced from January’s 0.91 to the current 0.83.

Bitcoin ETFs record $2.23B weekly inflows

Despite the recent plunge, Bitcoin price is still up by 9% in the past 7 days. BTC is trading at an average price of $91,855 at the press time. Its 24-hour trading volume is down by 36% to stand at $37.4 billion with a market cap of $1.82 trillion.

US spot Bitcoin ETFs game is looking strong as they recorded a total net inflow of $917 million on April 23 and $936 million on April 22. It has marked four consecutive days of net inflows. Its weekly inflow has breached the $2.23 billion mark. 

On the other side, spot Ethereum ETFs saw a total net outflow of $23.88 million, with only the Grayscale ETF (ETH) registering a net inflow. Ethereum’s price dropped by 3% in the last 24 hours and has been down by 16% over the past 30 days. ETH is trading at an average price of $1,730 at the press time.

Bitcoin’s safe-haven narrative is getting louder, moving more like gold and less like stocks. As US equities stumble and the dollar weakens, BTC’s resilience is catching serious attention. Traders are watching Trump like hawks as his tone on Powell and China keeps shifting.