ChainCatcher reported that CryptoQuant’s Axel Adler said Bitcoin (BTC) is seeing large inflows to exchanges while stablecoin liquidity continues to flow out. According to his post, both sides of the market’s supply-demand structure have weakened at the same time, and this has been identified as an important reason behind Bitcoin’s roughly 22% decline from its May high.
Bitcoin Net Exchange Flow Turns Clearly Positive
Data cited in the report shows that Bitcoin’s 30-day net exchange flow indicator has turned clearly positive and currently stands at about +114,000 BTC. The metric tracks the net movement of BTC into or out of exchanges over a 30-day period. When the figure rises into positive territory, more BTC is being sent to exchanges than withdrawn, increasing the amount of Bitcoin available on trading venues.
The shift is notable compared with early May. At that time, Bitcoin’s 30-day net exchange flow was in a net outflow range of about -85,000 to -115,000 BTC, indicating that the market was closer to an accumulation phase. The current positive reading marks a change in structure, which Adler described as a move from accumulation to distribution.
Stablecoin Liquidity Leaves Exchanges
The Bitcoin flow indicator rose as high as about +167,000 BTC in early June, showing that more holders had moved BTC onto exchanges and adding to potential selling pressure. At the same time, the 30-day moving average of stablecoin net flows has remained negative and is currently around -$105 million, pointing to a reduction in stablecoin funds available on exchanges for buying activity.
In early May, the same stablecoin flow metric was still in a positive range of about +$40 million to +$90 million, reflecting stronger buy-side liquidity in the market. After mid-May, the figure turned negative, and in early June it expanded to roughly -$150 million to -$170 million. Adler said this shows stablecoin capital is leaving exchanges and that the market’s “ammunition” is decreasing. In this setup, BTC inflows to exchanges increase available supply while stablecoin outflows reduce buying liquidity, leaving both sides of the market under pressure.