Bitcoin Experiences Major Sell-Off as Retail Inflows Plummet

Bitcoin has undergone a significant sell-off, with retail inflows to exchanges witnessing a dramatic decline. According to Cointelegraph, inflows from entities holding up to 1 Bitcoin have hit a record low, dropping to just 411 BTC per day, a stark contrast to the 2,675 BTC seen in December 2022.

This trend reflects a broader structural decline in retail participation, coinciding with the rise of more accessible investment vehicles like spot Bitcoin exchange-traded funds, which have allowed investors to gain exposure without engaging directly with exchanges.

Meanwhile, CoinDesk noted that European markets were predominantly responsible for the recent downturn, contributing to a 25% decrease in Bitcoin's value in November. Additionally, on-chain analytics from Santiment reveal that over 403,000 Bitcoin have been removed from exchanges over the past year, indicating a potential long-term holding strategy among investors.

While this off-exchange accumulation is generally seen as positive, the overall market sentiment remains fragile, particularly as liquidity tightens ahead of crucial Federal Reserve announcements.