Bitcoin Exchange Supply at 7-Year Low as Crypto Inflows and Retail Activity Surge

Bitcoin Exchange Supply Hits 7-Year Low Amid Renewed Accumulation

The total supply of Bitcoin on exchanges has dropped to its lowest level in seven years, reaching 2.488 million BTC on Friday, according to CryptoQuant data cited by Decrypt. Over the weekend, exchange reserves slightly increased to 2.492 million BTC, but this remains the lowest level since October 2018. This significant reduction in exchange balances coincides with Bitcoin’s price standing at $95,400, as the cryptocurrency seeks to build on recent gains.

In parallel, Bitcoin funds experienced $3.2 billion in inflows during the week ending April 28, as reported by CoinShares Digital Asset Funds Flows. This marks a sharp turnaround from previous weeks of negative flows, with the prior month-to-date outflow totaling $894 million. The combination of declining exchange balances and increasing fund inflows suggests a renewed phase of accumulation, with retail investors playing a more prominent role. The exchange whale ratio, which measures the proportion of large inflows from the top 10 entities, fell from 0.512 on April 17 to 0.36 on April 27, indicating increased retail participation and more organic demand for Bitcoin.

Analysts note that Bitcoin’s correlation with gold has fluctuated significantly since the start of the year, ranging from 0.74 at the end of January to –0.87 in early February, and showing similar volatility in subsequent months. Despite narratives about Bitcoin acting as “digital gold,” the data does not conclusively support this thesis. However, the Bitcoin dominance index, representing BTC’s market cap relative to the entire crypto market, has risen from 54% in early December to 63.4%, reflecting a shift from volatile altcoins to the more stable Bitcoin.

The Bitcoin volatility index has generally remained within a narrower band in recent years, with fewer large spikes compared to pre-2023 levels. Notably, on April 7, the index recorded its second-highest reading of 2025, jumping from 3.4 to 6.71 as Bitcoin’s price dropped to a five-month low of $74,773.

Summary: Bitcoin’s exchange supply is at a seven-year low, with $3.2 billion in fund inflows and increased retail participation. The BTC dominance index has risen to 63.4%, and volatility remains present, with significant price movements in early April. (Source: Decrypt)

Australian Watchdog Targets Dormant Crypto Exchanges

Australia’s financial watchdog, AUSTRAC, has initiated a crackdown on inactive crypto exchanges, warning that dormant businesses must deregister or risk having their registrations canceled. According to Decrypt, AUSTRAC is reaching out to digital currency exchanges (DCEs) that appear inactive, urging them to voluntarily withdraw their registrations. The regulator’s CEO, Brendan Thomas, stated that such businesses pose a “high risk” of being exploited by criminals due to the legitimacy conferred by AUSTRAC registration.

AUSTRAC currently has 427 registered DCEs but suspects that many are no longer operational. The agency plans to publish cancellations online and launch a public register to help consumers verify legitimate providers. Several companies, including FTX Express Pty Ltd, AccE Australia Pty Ltd, and Oaks Payments Pty Ltd, have already had their registrations canceled due to inactivity or insolvency. The crackdown follows a year-long investigation that led to regulatory actions against 13 crypto firms in February, with over 50 additional firms under scrutiny.

“Our intelligence shows cryptocurrency can be exploited by criminals for money laundering, scams, and money mule activities, and we’re seeing far too many people falling victim to scams involving digital currency,” said AUSTRAC CEO Brendan Thomas.

• AUSTRAC has 427 registered DCEs.
• Several firms, including FTX Express and AccE Australia, have lost registrations.
• 13 crypto firms faced regulatory action in February.
• Over 50 additional firms are under scrutiny.

The regulatory push comes ahead of Australia’s May 3 election, with increasing calls for clearer crypto regulation. Coinbase has urged Australian voters to support candidates advocating for well-defined digital asset regulations, describing the current policy environment as “frustratingly vague and underdeveloped.”

Summary: AUSTRAC is intensifying oversight of dormant crypto exchanges, canceling registrations to protect consumers and prevent criminal misuse. The move is part of a broader regulatory effort as Australia approaches a key election. (Source: Decrypt)

Pantera Capital Appoints Marco Santori as General Partner

Pantera Capital, a leading digital asset manager, has named Marco Santori, the former chief legal officer of Kraken, as a general partner, according to Bloomberg.com. Santori, recognized in the crypto industry for creating the Simple Agreement for Future Tokens (SAFT), previously managed a legal team of nearly 70 attorneys at Kraken. During his tenure, he helped the exchange navigate two actions brought by the U.S. Securities and Exchange Commission under the Biden administration.

Kraken announced in March that the SEC had agreed in principle to drop its one outstanding lawsuit against the exchange. Santori’s appointment is seen as a strategic move for Pantera, leveraging his extensive legal and regulatory experience in the evolving crypto landscape.

Summary: Marco Santori, known for his legal expertise and the creation of SAFT, joins Pantera Capital as general partner after leading Kraken’s legal team through significant regulatory challenges. (Source: Bloomberg.com)

Crypto ETPs Record $3.4 Billion Inflows, Third-Highest on Record

Global cryptocurrency exchange-traded products (ETPs) saw their third-largest inflows on record last week, totaling $3.4 billion, according to CoinShares data reported by TradingView. This is the highest level since December 2024 and just 13% below the all-time high of $3.85 billion set in early December 2024. The renewed investment interest came as Bitcoin’s price broke above $90,000, with Bitcoin ETPs attracting $3.18 billion in inflows.

The inflows reversed previous outflows since the beginning of April, bringing year-to-date inflows to $3.7 billion. Bitcoin ETPs now have $132 billion in assets under management (AUM), while the total AUM for all crypto ETPs has reached $151.6 billion. Ether-based products saw $183 million in inflows, ending an eight-week streak of outflows. Sui and XRP also posted notable gains, with $20.7 million and $31.6 million in inflows, respectively. Solana was the only major altcoin to see outflows, losing $5.7 million.

• BlackRock’s iShares ETFs led with $1.5 billion in inflows.
• ARK and Fidelity followed with $621 million and $574 million, respectively.
• Grayscale, ProShares, and CoinShares saw outflows of $84 million, $18 million, and $7 million, respectively, month-to-date.

CoinShares’ James Butterfill attributes the inflows to concerns over tariffs impacting corporate earnings and a weakening US dollar, which increased demand for safe-haven assets. The inflows also coincided with a decline in gold prices, which fell from nearly $3,500 on April 22 to $3,275 on April 23.

Summary: Crypto ETPs recorded $3.4 billion in inflows, the third-highest on record, with Bitcoin and Ether products leading the gains. The trend reflects renewed investor interest amid macroeconomic concerns and shifting safe-haven preferences. (Source: TradingView)

Sources:

• Bitcoin Exchange Supply Reaches 7-Year Low as Traders Hunker Down
• 'Use It or Lose It': Australian Watchdog Cracks Down on Dormant Crypto Exchanges
• Coinbase Welcomes Competition in Crypto as Institutional Adoption Redefines Global Finance
• FTX Goes on the Offensive Over Missing Tokens, Sues Noncompliant Issuers
• Pantera Names Former Kraken Chief Legal Officer Marco Santori a General Partner
• Crypto ETPs hit 3rd-largest inflows on record at $3.4B — CoinShares