Bitcoin exchange flows from wholecoiners, or wallets transferring at least one full BTC, have reached their lowest point since 2018. This development comes as the cryptocurrency market experiences shifting dynamics, with large holders displaying a noticeable change in behavior and broader market structure reflecting increased supply constraints.
Sharp decline in wholecoiner activity
On Binance, the world’s largest cryptocurrency exchange by trading volume, monthly average Bitcoin deposits from wholecoiners now hover around 6,000 BTC. This level marks a significant reduction from the 15,400 BTC monthly average seen in 2021.
Globally, these transfers to exchanges have fallen even more dramatically. The total number of Bitcoin sent in single, whole BTC transactions to exchanges recently settled near 27,500 BTC, a sharp contrast to the 80,000 BTC recorded at the 2018 peak.
Multiple factors appear to explain this downward movement. The substantial appreciation in the price of Bitcoin has made acquiring and holding one full BTC a challenge for new and existing investors, which has gradually decreased the number of wholecoiners participating actively on exchanges.
In addition, access to spot Bitcoin ETFs, launched in 2024 in several major markets, now allows investors to gain exposure to BTC without holding actual coins. This development has drawn some interest away from traditional exchange participation.
A growing number of holders are also adopting longer-term investment strategies. This has led to more coins remaining in cold storage wallets and a continued decline in direct exchange activity from large holders.
“This decline in active wholecoiners on exchanges reflects both reduced selling pressure and a gradual transformation of market structure, with a growing share of supply becoming increasingly illiquid over time,” commented Darkfost, an on-chain analyst specializing in Bitcoin market trends.
Short-term holders increase activity near $75,000
While the long-term holder cohort pulls back from exchanges, short-term holders (STHs) have recently taken the opposite approach, especially as Bitcoin’s price tests higher levels.
When the BTC price moved near $75,000, STHs sent over 65,000 BTC to exchanges in just 24 hours, with 61,000 of those coins being sold at a profit. This pattern indicates that rapid upward price movement currently encourages swift profit-taking among shorter-term investors.
Comments from analyst Michaël van de Poppe highlight further shifts. He observed that negative funding rates and increased open interest in derivatives markets are creating the conditions for a potential short squeeze as Bitcoin repeatedly tests resistance levels.
“…as long as BTC remains above $72K, I wouldn’t be worried, and I’d rather be looking for longs vs. shorts,” remarked van de Poppe regarding the current technical landscape.
He also identified the $85,000 to $88,000 range as the next significant resistance if Bitcoin manages to stay above $75,000 and break higher.
On-chain researcher Axel Adler Jr. recently reported that Bitcoin’s Bull-Bear Index has shifted into positive territory, signaling an end to the latest bearish cycle. However, he pointed out that broader network profit and loss sentiment remains weak, characterizing the current rebound as a recovery rather than the start of a new sustained bull market.
