Bitcoin Correction Deepens as Exchange Inflows Spike, Then Rapidly Cool

The recent Bitcoin drawdown intensified on February 6 when price slipped below $60,000, extending losses to more than 52% from the all-time high.

According to data shared by CryptoQuant, the move was accompanied by a sharp surge in exchange inflows, highlighting broad de-risking activity across both retail and professional segments.

The correction phase has tested conviction across the market, reinforcing the perception of a bear-market environment during the peak of the selling wave.

Exchange Inflows Accelerated the Drop

On February 5, Bitcoin inflows to major exchanges spiked materially.

• Binance inflows: 25,000 BTC
• Coinbase Advanced inflows: 17,600 BTC

Binance, the largest global trading venue by volume, absorbed the largest absolute flow. Meanwhile, Coinbase Advanced, a U.S.-regulated platform primarily used by institutional and professional traders, recorded inflows five times higher than at the beginning of the month.

Such concentrated inflow activity typically signals heightened intent to sell or hedge, and in this case, the scale of the transfers amplified short-term downside pressure.

The simultaneous surge across both retail-heavy and institutional platforms underscores that the correction was not isolated to a single investor cohort.

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Selling Pressure Has Since Eased

Since the peak inflow event, activity has declined significantly.

• Binance inflows: Reduced to 8,400 BTC
• Coinbase Advanced inflows: Dropped to 1,400 BTC

That represents roughly a threefold reduction on Binance and a tenfold decline on Coinbase Advanced.

The cooling of exchange deposits suggests that the initial panic-driven rotation toward liquidity has largely subsided for now. With fewer coins moving onto exchanges, immediate sell-side pressure has moderated.

What This Means Structurally

The drawdown below $60,000 marked a psychologically significant threshold, particularly given the depth of the retracement from the prior cycle high. However, the rapid contraction in inflows indicates that the most aggressive phase of de-risking may have passed.

If demand stabilizes or strengthens while exchange inflows remain contained, the current environment could shift from forced correction toward gradual rebalancing. The modest recovery already underway would need to hold key levels above $60,000 to reinforce that transition.

For now, volatility remains elevated, but the decline in exchange inflows suggests that the acute phase of selling pressure has eased, shifting the market from panic response toward stabilization.

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