TechFlow reported on June 12 that CryptoQuant analyst Axel Adler said Bitcoin (BTC) is seeing a large increase in flows to exchanges, while stablecoin liquidity continues to move out. Adler described the simultaneous deterioration on both the supply and demand sides as an important reason behind Bitcoin’s roughly 22% decline from its May high.
Bitcoin exchange flow shifts from accumulation to distribution
According to the data cited by Adler, Bitcoin’s 30-day net exchange flow has turned clearly positive and currently stands at about +114,000 BTC. The metric tracks the net change between Bitcoin entering exchanges and Bitcoin leaving exchanges over the period. A positive reading means that more BTC is being transferred into exchanges than withdrawn from them.
This marks a significant change from early May. At that time, Bitcoin’s 30-day net exchange flow was in a net outflow range of approximately -85,000 to -115,000 BTC, indicating that coins were still leaving exchanges. Adler characterized the latest shift as a move from an accumulation phase into a distribution phase. In early June, the metric once climbed to around +167,000 BTC, showing that more holders had moved BTC onto exchanges and increasing the amount of Bitcoin available for sale.
Stablecoin outflows reduce available buying liquidity
The stablecoin side of the market has weakened at the same time. CryptoQuant data shows that the 30-day moving average net flow for stablecoins remains negative, currently at about -$105 million. In early May, the same indicator was still in the +$40 million to +$90 million range, which represented stronger buying liquidity on exchanges.
After mid-May, the stablecoin net flow turned negative and widened in early June to roughly -$150 million to -$170 million. Adler said this shows stablecoin funds are leaving exchanges, reducing the funds available in the market to buy BTC. With more Bitcoin moving onto exchanges and stablecoins moving out, the market is facing pressure from both increased supply and reduced buying liquidity.