Whale Activity Surges as Bitcoin Supply Increases Amid Weak Spot Demand
Bitcoin is exhibiting signs of a market shift as whale deposits to Binance surge and exchange reserves rebound. However, spot demand remains weak, indicating that large holders are moving coins into positions where they can be sold but there isn't enough buying pressure to absorb the supply.
The on-chain data shows that the trend of Bitcoin flowing out of exchanges and into self-custody wallets is reversing. Binance's Whale Inflow Ratio has climbed sharply since August, with a seven-day moving average briefly touching 0.60. This means that a significant share of recent inflows comes from large holders rather than retail participants.
The rising whale inflow ratio represents an increase in potential sell-side pressure as these assets become more accessible for liquidation or position adjustments. Total exchange reserves, which bottomed out at approximately 2.67 million BTC in May, have climbed to around 2.73 million BTC, marking the first sustained increase after a prolonged decline.
However, spot demand is weak, with Spot Taker CVD remaining neutral since June, indicating no clear buy dominance. The market is characterized by a lack of committed buyers rather than aggressive selling.