Bitcoin exchange inflows and miner outflows drop as BTC eyes $100K

Bitcoin (CRYPTO:BTC) reached a peak price of $108,000 on December 17, 2024, but has since dropped by more than 10%.

New data from CryptoQuant shows that Bitcoin exchange inflows, which measure the total amount of BTC moved to exchanges, and miner outflows, which track the BTC miners send to exchanges, have significantly reduced since November 2024.

This reduction suggests less selling pressure.

Exchange inflows hit a high of 98,748 BTC on November 25, 2024, after two months of elevated activity.

However, in December, the number of BTC sent to exchanges decreased but remained substantial, ranging between 11,000 and 79,000 BTC daily.

This decline in exchange inflows was matched by a drop in miner outflows, a sign that miners, who typically sell BTC to cover operational expenses, are offloading less.

In November 2024, miner outflows peaked at 25,367 BTC on November 11 as Bitcoin's price neared $88,000.

By January 2025, miner outflows decreased significantly with 5,489 BTC sent on January 1, 5,748 BTC on January 2, and 2,133 BTC on January 3.

Bitcoin's price movement in January 2025 largely depends on trading volume.

According to Bitfinex analysts, Bitcoin is expected to trade between $95,000 and $110,000 in January.

However, market analyst Axel Adler emphasised that Bitcoin needs an increase in daily trading volume to break through resistance and see substantial growth.

"The market structure remains bullish, with no clear signs of being overheated. However, for a strong impulse, we lack sufficient trading volume. Therefore, we are waiting for the market to recover from the holiday season," Adler noted.

Additionally, Bitcoin exchange-traded funds (ETFs) are showing signs of recovery after several days of significant outflows, with $900 million in inflows recorded on January 3, 2025.

This uptick in ETF activity indicates renewed interest in Bitcoin from traditional and institutional investors.

At the time of reporting, the Bitcoin (BTC) price was $98,715.35.