Historically, exchange deposits have tended to outpace withdrawals, with one notable exception in the past five years occurring at the time of FTX's collapse in November 2022 when withdrawals spike.

Typically, spikes in Bitcoin deposits correlate with price increases, as investors look to sell their holdings. This is evidenced by over 90,000 BTC deposited into exchanges in a single day during Bitcoin's all-time high in March 2024. Since then, deposits have dropped to around 43,000 BTC as of May 19.

While withdrawals are lower than deposits, the gap between the two continues to narrow. As of May 19, withdrawals were around 30,000 BTC, with the difference between deposits and withdrawals falling to around 13,000 BTC – the lowest since Q4 2023.

Exchange dominance | Source: Glassnode

The move shows that while large deposits are still occurring, pointing to selling pressure, the falling spreads indicate a reduction in net deposits rather than a spike in withdrawals. The decline in daily deposits has helped Bitcoin regain nearly 20% gains from its local bottom on May 1.

Source: https://tapchibitcoin.io/chenh-lech-giua-cac-khoan-nap-va-rut-bitcoin-dat-muc-nho-nhat-ke-tu-quy-4-nam-2023.html