Internal traffic of Bitcoin exchange drops to about 14000 coins, the lowest since 2022

According to CryptoOnchain data, the total internal traffic of Bitcoin exchanges has dropped to the lowest level since 2022, at approximately 14000 BTC. This indicator tracks the BTC flow within the exchange, reflecting operational activities and short-term distribution readiness. The continuous decline indicates a significant reduction in BTC flow within the exchange, weakened market making activities, and tight liquidity. Lower traffic is usually associated with increased holding behavior, reduced arbitrage activities, thinner order books, and increased sensitivity to shocks. Currently, the Bitcoin market is in a "liquidity pause" phase, which has historically been accompanied by drastic directional changes after the market resumes activity.