Whales Move 9,000 BTC to Exchanges — Analysts Warn of Deeper Bitcoin Drop Ahead
A steep climb in Bitcoin flowing into exchanges is fueling fears that deeper falls are just around the corner. New figures from CryptoQuant.
Quick overview
- A significant increase in Bitcoin deposits to exchanges has raised concerns of potential further price declines.
- Recent data indicates that 45% of incoming Bitcoins are from large transactions, suggesting major players are liquidating positions.
- Stablecoin reserves on Binance have reached a record $51 billion, indicating a shift towards safer assets amid market uncertainty.
- The altcoin market is also experiencing weakness, with analysts predicting a possible short-term rebound despite ongoing instability.
A steep climb in Bitcoin flowing into exchanges is fueling fears that deeper falls are just around the corner. New figures from CryptoQuant are raising concerns: a massive 9,000 Bitcoins were deposited into exchanges on Nov. 21, right as the price dipped to $80,600 on Coinbase, its lowest level in seven months. Analysts are warning that if this keeps going, the sell-off the market’s already feeling will only get worse.
New data shows that around 45% of all Bitcoins entering are from transactions of 100 or more, indicating just how much big players are moving their money around. In one day alone last month, whale accounts deposited a whopping 7,000 Bitcoins, suggesting that major players are looking to get out of some pretty sizeable positions.
CryptoQuant has also noticed that the average deposit size in November hit a 12-month high of 1.23 BTC – that’s the highest figure in years, and it’s a clear sign that a lot of people are choosing to keep their Bitcoins in a state of readiness to sell, rather than storing them safely away in cold storage.
Stablecoin Reserves Hit Record Levels
The selling pressure is coming at a time when global exchange flows are shifting. Binance’s stablecoin reserves have hit a record $51 billion – that’s the highest they’ve ever been. Meanwhile, the amount of Bitcoin and Ethereum entering exchanges has reached a whopping $40 billion over the last week, with Binance and Coinbase leading the way.
When stablecoin balances are this high, it usually means investors are getting out of volatile assets and looking for a temporary haven in dollar-pegged tokens. This is a typical pattern when there’s a lot of market uncertainty: people tend to put their money into safe-haven assets and wait for a better time to take on risk again.
Some other factors are influencing market sentiment right now:
- There’s a lot of still-unwound leverage out there in the market, and analysts are saying that hasn’t been resolved yet
- There’s a widely-held expectation of a $70,000 to $80,000 liquidity flush on the horizon
- Even some high-profile Bitcoin enthusiasts are starting to have doubts about the long-term future – BitMines chairman Tom Lee is one of them, having previously predicted that the price of Bitcoin would reach $250,000; he’s now downgraded that projection to “maybe ” we’ll see all-time highs hit this year.
Altcoins Mirror Bitcoin Weakness
The pressure isn’t just on Bitcoin. CryptoQuant has also seen a similar influx of new money into Ethereum, and the altcoin market’s been pretty badly hit by it. The result has been several assets sliding back into the bear-market zone
However, some analysts believe we may see a bit of relief soon – 10x Research reckon that a ” tactical, oversold rebound” is possible in the near term, pointing to $92,000 & $101,000 as key levels of resistance to watch. Currently, Bitcoin’s price has reclaimed the $90,000 mark; however, the momentum remains pretty fragile.
If this trend continues, analysts are warning that market stability may be a long time coming.
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