Bitcoin Volatility Subsides as Exchange Inflows Drop 90% After Peak Panic Selling

TLDR:

• Bitcoin recorded over 52% drawdown from all-time high as price fell below $60,000 on February 6
• Binance processed 25,000 BTC in panic-driven inflows before dropping threefold to 8,400 BTC recently
• Coinbase Advanced saw inflows plunge tenfold from 17,600 BTC peak to just 1,400 BTC in recent days
• Declining exchange inflows across platforms suggest selling pressure has largely subsided for now

Bitcoin volatility continues to test market participants as the leading cryptocurrency experiences a prolonged correction phase.

The digital asset dropped below $60,000 on February 6, recording a drawdown exceeding 52% from its all-time high. Exchange inflow data reveals panic-driven selling across both retail and institutional segments.

However, recent trends suggest selling pressure may be stabilizing as inflows decline substantially across major trading platforms.

Exchange Inflows Reveal Widespread Market Stress

The cryptocurrency market faced intense pressure on February 5 when Bitcoin inflows to exchanges surged dramatically.

Trading platforms recorded unusually high volumes as investors rushed to liquidate positions. This behavior reflected growing concerns about further price deterioration across the market.

Binance processed approximately 25,000 BTC in inflows during this period. The platform represents the largest global trading volume and serves a diverse user base.

The substantial flow indicated widespread selling activity across different investor categories. Market analyst Darkfost highlighted these developments in a detailed thread on the social media platform X.

Coinbase Advanced recorded 17,600 BTC in inflows on the same day. This figure represented a fivefold increase compared to early February levels.

The US-regulated platform primarily serves professional and institutional traders. The elevated activity demonstrated that sophisticated investors were not immune to market stress.

Both platforms experienced similar patterns despite serving different market segments. Retail traders and institutional participants alike moved assets onto exchanges for potential sales.

The synchronized behavior across platforms intensified downward price pressure. This dynamic created a challenging environment for all market participants attempting to navigate the correction.

Recovery Signals Emerge as Selling Pressure Subsides

Market conditions have improved considerably since the early February peak in exchange activity. Binance inflows declined to 8,400 BTC in subsequent days.

This represents a threefold reduction from the earlier surge. The decrease suggests panic selling has largely subsided among the platform’s user base.

Coinbase Advanced experienced an even more pronounced decline in inflows. The platform recorded just 1,400 BTC in recent activity.

This marks a tenfold reduction from the February 5 peak. Professional and institutional investors appear to have stabilized their positioning strategies.

The declining inflow trend indicates that forced selling has largely concluded. Market participants who needed to liquidate positions have already done so.

Remaining holders demonstrate greater conviction in their investment thesis. This shift creates conditions for potential price stabilization.

A modest recovery is already underway as selling pressure eases. The cryptocurrency has begun regaining some lost ground in recent sessions.

Sustained recovery depends on whether demand can match or exceed remaining supply. Market observers continue monitoring exchange flows for signs of renewed accumulation or distribution patterns.