About 29,000 Bitcoin have been withdrawn from cryptocurrency exchanges recently, even as traders in the futures market continue to increase short positions. Despite the withdrawals, spot trading activity for Bitcoin remains close to multi year lows.
The broader digital asset market moved slightly higher this week after Donald Trump suggested that the conflict with Iran could be nearing an end, although his later comments on social media took a more aggressive tone. During this period, Bitcoin briefly rose above $71,000 after gaining more than 4 percent.
Signs of Tightening Bitcoin Supply
According to a recent report from Binance Research, on chain data indicates that accumulation may be taking place in the spot market even while short positions continue to grow in derivatives trading. While a full market reversal has not yet been confirmed, the data suggests that market dynamics may be beginning to shift.
Researchers observed that around 29,000 BTC were withdrawn from exchanges while the asset traded between $65,000 and $75,000. This situation differs from the earlier price decline from $97,000 to $62,000, when rising exchange balances pointed to stronger selling pressure.
Over the past six months, however, the relationship between exchange balances and price movements has weakened. Lower liquidity across trading platforms could make future price swings more pronounced.
At the same time, stablecoin inflows to exchanges have increased by roughly 80 percent since March, climbing from about $2 billion. This trend suggests that new liquidity is entering the market and could be used to support further Bitcoin accumulation.
Even with these developments, spot trading volume for Bitcoin remains close to multi year lows. Reduced demand and thinner order books appear to be limiting activity on exchanges. Analysts suggest that some accumulation could be happening through over the counter channels rather than on public trading platforms. This view aligns with recently reported large outflows from over the counter desk balances.
In derivatives markets, open interest has increased by around 18 percent since the end of February after previously dropping below $30 billion. Meanwhile funding rates remain low or slightly negative, indicating that much of the current futures activity is driven by traders betting on lower prices.
Indicators Point to Market Stress
On chain data shared by analyst Amr Taha suggests that current conditions resemble previous periods of market stress. In a recent update, he noted that the Binance Bitcoin derivatives market index has declined to approximately 0.35.
This level is similar to readings recorded during July and August 2024 and is lower than the 0.43 level observed in April 2025. Historically, levels within this range have often appeared close to major market bottoms and were later followed by strong price recoveries.
Taha also highlighted a decline in the value of Bitcoin held by short term investors. According to the data, the market capitalization of these holdings has fallen to about $390 billion compared with roughly $437 billion recorded on April 7, 2025.
The analyst explained that large drops in this metric have often preceded capitulation among short term holders. A similar decline occurred on April 8, 2025 when heavy selling pressure pushed Bitcoin toward $78,000 before the asset eventually surged above $108,000.#crypto #cryptonews https://t.me/coinsignalpublic https://coinsignals.net
