Bitcoin has successfully crossed the $110,000 mark amidst a significant decline in trading volumes on exchanges, indicating increased investor confidence.
Decline in Exchange Volumes
In recent months, Bitcoin exchange volumes have plummeted by 82% compared to last November, suggesting diminished selling pressure. According to CryptoQuant.com, Bitcoin inflows fell from 121,000 in December to just 22,000 BTC in May. This indicates that investors are less willing to transfer their assets to exchanges, typically a sign of confidence and reduced liquidation risk.
Impact of Tether on Bitcoin Liquidity
Tether’s issuance continues to correlate with Bitcoin's price surges. A report by Lookonchain noted that Tether minted $2 billion USDT just before BTC touched $106,000. Since May 2025, the total issuance has reached $15.7 billion. Frequent $1 billion transactions between Tether’s treasury and key wallets confirm a systematic approach to capital management, coinciding with sharp price rallies for Bitcoin.
Increase in Institutional ETF Inflows
According to Tolks, Bitcoin ETF inflows reached $1.6 billion over five days, with $667 million raised on May 19 alone. These inflows reflect growing interest from institutional investors and act as additional support for Bitcoin's price at stable levels. Bitcoin's trading volume stands at $91.6 billion, up 71% from the previous day.
Overall, the current dynamics of the Bitcoin market, including declining exchange volumes, the impact of Tether, and institutional inflows through ETFs, reflect significant investor interest and potential further price growth.
