Long-Term Bitcoin Holders Return to Exchanges Amid Weakening US Demand
A significant shift in Bitcoin's on-chain activity has been observed, with long-term holders starting to move their coins to exchanges after years of dormancy. According to CryptoQuant data, there was a sharp increase in Coinbase inflows from 3- to 7-year-old coins, with 5-7 year old coins experiencing the largest surge at 1,016%. A large individual transfer of 3,848 BTC (approximately $242.5 million) was also identified.
The movement of these older coins may increase available market supply and influence short-term liquidity, particularly if accompanied by weakening spot demand. The Coinbase Premium Index, which measures the price difference between Coinbase and major offshore exchanges, has remained weak, suggesting that U.S.-based buyers are not bidding aggressively enough to create a sustained premium.
Bitcoin's technical structure also reflects this imbalance, with the 20-day and 50-day moving averages acting as resistance levels. Momentum indicators remain mixed, with the Relative Strength Index recovering modestly but remaining below its signal average.
The combination of these factors suggests that returning supply may be harder for the market to absorb, particularly if institutional buyers do not re-enter the market in the coming weeks.