A significant reduction in Bitcoin deposits to centralized exchanges has been observed, easing the sell pressure on the leading cryptocurrency by market capitalization. According to insights from CryptoQuant, the volume of Bitcoin being deposited has dramatically decreased from about 60,000 BTC on February 6, when the price hovered near $60,000, to an average of approximately 23,000 BTC over the past week.
The report indicates that this decline in deposits suggests a diminishing phase of acute sell-offs, even as overall exchange flows remain higher compared to previous months. The reduction in exchange inflows is anticipated to relieve some of the downward pressure on Bitcoin’s pricing.
However, while the total inflow of Bitcoin has decreased, a notable shift in the composition of these deposits has occurred. The “Exchange Whale Ratio” from CryptoQuant, which measures the proportion of the top 10 inflows against total deposits, has surged to 0.64, representing the highest level since 2015. This figure indicates that a striking 64% of Bitcoin deposits are coming from large investors, or “whales,” suggesting that significant sell activity is concentrated among a select group of major holders.
CryptoQuant analysts comment that the influx of whales actively selling their Bitcoin has been a recurring trend, contributing to what they refer to as the “great redistribution” of Bitcoin. This phenomenon involves the transfer of Bitcoin from long-term holders to new investors, a process that has reportedly unfolded over multiple waves.
Despite the recent drop in Bitcoin’s price, which soared to an all-time high of $126,080 in October before experiencing a 46% decline to its current value of $67,582, some analysts are cautious about the asset’s near-term recovery potential. Previous analyses suggest that Bitcoin’s ultimate bear market bottom may lie around the $55,000 threshold. Furthermore, current trends in exchange analysis reveal a concerning dip in available stablecoin reserves—known as “dry powder”— which is often indicative of diminished buying power for crypto assets.
Market participants are demonstrating a bearish outlook, with users on the Myriad prediction platform—operated by Decrypt’s parent company—projecting a 57% likelihood that Bitcoin’s price will tumble to $55,000 before seeing any potential increase to $84,000. This sentiment echoes concerns that the path of least resistance for Bitcoin may lean toward further decline in the short term.
