Update
Binance Retail BTC Inflows Hit Multi-Year Low
Retail Bitcoin transfers into Binance are shrinking, with the 30-day average for deposits smaller than one Bitcoin at Binance reaching 281 BTC. This is about five times lower than the 2019-2021 peak of 2,700 BTC. The decline challenges the assumption that rising Bitcoin valuations prompt greater exchange activity, but cannot distinguish sales preparation from routine transfers. The January 2024 launch of U.S. spot Bitcoin ETFs is suggested as a potential structural explanation for the decline, as ETFs allow investors to obtain exposure through brokerage accounts instead of sending Bitcoin to trading platforms.