Bitcoin deposits on centralized exchanges have experienced a notable decline from their recent peak. On February 6, deposit levels reached approximately 60,000 BTC as the cryptocurrency’s price hovered around $60,000. However, the situation has changed, with average daily deposits now falling to around 23,000 BTC over the last week, according to a report from blockchain analytics firm CryptoQuant.
This decrease in deposit activity indicates that the intense sell-off phase in the market has softened, resulting in less selling pressure on Bitcoin, which remains the leading asset in the cryptocurrency sphere by market capitalization. The report highlights that, despite this moderation, the sources of deposits are skewed toward larger investors, often referred to as “whales.”
CryptoQuant’s “Exchange Whale Ratio” has reached a significant 0.64, signifying that 64% of all Bitcoin inflows to exchanges are attributed to the top ten depositors. This trend suggests a heightened selling activity among large investors, which is a marked shift from the behavior of smaller traders.
The ongoing activity from these major holders is part of a broader narrative involving the transfer of Bitcoin ownership. Last year, Bitcoin reached an all-time high of $126,080 in October, but has since fallen by 46%, currently priced around $67,582. Analyst J.A. Maartun from CryptoQuant described this as the “great redistribution,” where long-term holders have been selling their assets, contributing to an unprecedented amount of Bitcoin changing hands.
Looking ahead, prospects for a price rally appear uncertain. Earlier analyses from CryptoQuant suggest that the “ultimate bear market bottom” for Bitcoin could be around $55,000, and recent findings show that the supply of stablecoins, particularly USDT, available to purchase crypto assets is dwindling. Historically, price rallies in the crypto market are often accompanied by increased deposits of stablecoins on exchanges.
Market predictions align with this analysis, with users on Myriad—a prediction market platform—assigning a 57% probability that Bitcoin’s price will drop to $55,000 before recovering to $84,000. As market participants closely watch these trends, the landscape for Bitcoin remains complex and evolving, influenced heavily by the actions of significant players in the market.
