Recent on-chain and exchange flow data show a sharp collapse in Bitcoin and Ethereum inflows on Coinbase, signaling a notable slowdown in institutional and U.S.-centric crypto liquidity. Over a seven-day period, cumulative inflows of BTC and ETH into Coinbase — often seen as a proxy for institutional demand — dropped by more than 60 %, suggesting traders are reducing deposits rather than accumulating. Meanwhile, Binance’s exchange inflows declined by a smaller margin, resulting in Binance surpassing Coinbase in net inflow activity in December.
Analysts interpreting the data argue that the elevated inflows seen earlier in the year, including over $21 billion on Coinbase when Bitcoin was trading around ~$88,000, may have reflected portfolio rebalancing or preparatory positioning, rather than decisive accumulation. As prices have remained in a narrow range and liquidity has tightened, the collapse in new flows highlights a cooling of trading and risk appetite among major market participants.
The shift in exchange flow dynamics — with Binance showing relatively more sustained activity — may reflect differing user bases and trading behaviors between platforms. Binance’s broader international reach and retail trading volumes could be supporting steadier inflows, whereas Coinbase’s flows are more sensitive to institutional sentiment and U.S. market pressure. The divergence in exchange flows could serve as an early indicator of broader market sentiment, with traders watching for renewed demand or further contraction in liquidity.
Overall, while Bitcoin and Ethereum prices have shown limited directional movement recently, the collapse of Coinbase inflows alongside relatively stronger Binance activity suggests a cautious market climate, where participants are hesitant to push fresh capital into risk assets despite sideways price action.