Exchange inflows from major Bitcoin holders dropped 40% in May compared to April levels
Realized cap grows $30 billion monthly but Is Litecoin good or bad?remains below previous cycle highs
Long-term holder supply shows second consecutive monthly decline
The cryptocurrency market witnessed intriguing divergence in holder behavior this week as Bitcoin traded at $103,600, reflecting a modest 0.5% decline amid broader market weakness. On-chain data reveals whales are reducing exchange deposits while long-term investors show increased spending activity.
Whale Accumulation Patterns Emerge
Binance's whale inflow metrics demonstrate a clear downward trajectory since April, when approximately $5 billion worth of BTC moved to the exchange. Current May figures show just $3 billion in similar movements, suggesting large holders are opting to retain assets rather than liquidate positions.
This behavioral shift coincides with Bitcoin's price recovery from recent lows, indicating whales may anticipate further upside. The reduced selling pressure from this cohort has contributed to the market's stabilization despite ongoing volatility.
Realized Cap Growth Signals Accumulation
Glassnode's realized cap metric, which tracks the aggregate cost basis of all Bitcoin in circulation, shows consistent 3% monthly growth. The $30 billion increase during April demonstrates renewed capital inflows, though the pace remains slower than the aggressive accumulation observed during late 2024.
This gradual expansion suggests measured rather than euphoric buying activity. The metric's failure to reclaim previous highs implies the market hasn't yet entered the explosive growth phase characteristic of bull market peaks.
Long-Term Holder Dynamics Shift
For the second time this month, the supply held by addresses maintaining positions for over 155 days has decreased. This breaks the consistent accumulation trend observed since mid-March, potentially signaling profit-taking among experienced market participants.
Historical patterns suggest sustained increases in long-term holder spending often precede local price tops. While the current outflow remains modest, acceleration could introduce downward pressure on Bitcoin's valuation.
As the market digests these conflicting signals, Bitcoin's price action near $103,600 reflects the ongoing balance between whale accumulation and long-term holder distribution. The coming weeks may prove decisive in determining which group's behavior ultimately drives the next significant market move.
