Declining large-holder flows signal structural changes in Bitcoin market.
Bitcoin’s market is undergoing a structural shift as inflows from large holders to major exchanges collapse.
Transactions of over 1 Bitcoin, the so-called “wholecoiner” inflows, to Binance have dropped to a yearly average of 6,500 BTC, a level not seen since 2018. The weekly inflows averages near 5,200 BTC, which is also among the lowest of this cycle, says crypto analysis firm CoinGlass.
Unlike previous cycles, these inflows have steadily declined even as Bitcoin trades near $89,600 signaling reduced selling pressure from major investors.
CoinGlass analyst suggests this indicates reduced selling pressure from investors holding significant amounts of BTC.
Analysts point to rising valuations, increased difficulty in owning a full coin, and the proliferation of alternative exchanges and DeFi platforms as key factors behind the trend.
Market Structure Shifts: Institutions Consolidate While Retail Faces Losses
Glassnode’s latest on-chain analysis supports this perspective. According to their X post, short-term holders currently have an average cost basis of $102,200, meaning most are holding at a loss.
Meanwhile, the average cost basis for all active investors and the broader market sits around break-even or in profit.
With Bitcoin’s realized price at $56,400, the market remains well above its historical average cost, underscoring sustained long-term profitability.
Holdings among institutions and large entities are becoming increasingly concentrated. Public companies control around 1.07M BTC, governments 0.62M BTC, U.S. spot ETFs 1.31M BTC, and exchanges 2.94M BTC.
Together, accounting for nearly 30% of the circulating supply. This concentration further restricts liquidity available to retail and short-term investors.
Why This Matters
Overall, these trends suggest a market with reduced selling pressure from major holders, liquidity increasingly concentrated among institutions, and structural shifts shaping Bitcoin’s price trajectory.
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