07/08/2023
146 CommentsBitcoin Deposit and Withdrawal Spread Hits Smallest Level Since Q4 2023
Historically, exchange deposits tend to outpace withdrawals, with one notable exception over the past five years occurring around the time of FTX's collapse in November 2022 when withdrawals spiked. Typically, spikes in Bitcoin deposits correlate with price increases as investors look to sell their holdings. This was evidenced by over 90,000 BTC being deposited into exchanges in a single day during Bitcoin’s all-time high in March 2024. Deposits have since dropped to around 43,000 BTC as of May 19. While withdrawals are lower than deposits, the gap between the two continues to narrow. As of May 19, withdrawals were around 30,000 BTC, with the difference between deposits and withdrawals falling to around 13,000 BTC – the lowest since Q4 2023.
The move shows that while large deposits are still coming in, indicating selling pressure, the falling spread suggests a reduction in net deposits rather than a spike in withdrawals. The reduction in daily deposits has helped Bitcoin regain nearly 20% gains from its local bottom on May 1.
