Medium-sized Bitcoin wallet volumes flowing into Binance have fallen back to 2023 levels, signaling that short-term selling pressure may be easing.

Cointelegraph reported on April 21 that the seven-day average inflow to Binance from medium-sized wallets holding 100 to 1,000 BTC fell to around 3,000 to 4,000 BTC.

These wallets are usually classified as addresses linked to active traders or small institutions. They often move coins to exchanges when the market enters a distribution phase, so their inflows are used as an indicator of near-term selling intent. Citing CryptoQuant data, crypto analyst Amr Taha pointed out that the current scale of inflows to Binance is clearly below the 5,500 to 6,000 BTC seen in April and May 2023.

Retail investor activity was also limited. Exchange inflows from wallets holding 1 to 100 BTC were below 300 BTC as of April 22. That suggests funds are moving within a limited range rather than broad-based selling across the market. Inflows to exchanges do not necessarily lead straight to selling, but it can be interpreted as meaning large-scale sell orders are not waiting immediately.

Flows differed by exchange, however. Coinbase saw about 8,500 BTC flow in from medium-sized wallets on April 19, a level similar to just after the collapse of FTX in November 2022. Bitcoin inflows to other exchanges were relatively limited. Amr Taha explained, "If the overall market has entered a distribution phase, it is common to see inflows across multiple exchanges at the same time, but the current data does not clearly show that."

There is also precedent for a similar surge in inflows at Coinbase. The same pattern was spotted on Jan. 14, after which Bitcoin fell from $95,000 to below $67,000 in February. This time, however, the structure differs from then in that inflows are concentrated in some exchanges rather than across the market. An interpretation has emerged that investor sentiment is mixed rather than leaning in one direction.

On the supply side, flows leaving exchanges are continuing. Bitcoin analyst Axel Adler Jr said 30-day net inflows switched from a net inflow of 94,000 BTC in February to a net outflow of 300,000 BTC in March. As of April 21, the indicator showed a net outflow of about 98,000 BTC. The pace of outflows has eased somewhat but continues.

A decline in exchange holdings was also confirmed. Analyst Axel Adler Jr said exchange reserves fell for seven straight weeks and have dropped by more than 105,000 BTC since early March. He added that even when Bitcoin slid to around $67,000 on April 2, there was no large-scale return of coins to exchanges.

These trends show the Bitcoin market has recently been seeing different reactions by exchange and investor group rather than uniform selling. The slowdown in inflows to Binance and the decline in exchange holdings tilt toward easing selling pressure, but the volume flowing into Coinbase remains a near-term variable. The market is watching whether Bitcoin inflows spread across exchanges or remain limited as they are now.