Simply put
- Last week, Bitcoin deposits surged to nearly 50,000 BTC daily, as reported by CryptoQuant.
- The average deposit amount has doubled to around 2 BTC, reflecting activity from institutional and whale investors.
- Historically, such high deposit levels have preceded significant price movements.
Bitcoin deposits to centralized exchanges, which often indicate a sell-off could be coming, jumped significantly as BTC dipped below $60,000, based on data from a blockchain analytics firm.
Nearly 50,000 BTC is now being deposited daily, marking the fourth occurrence of this level in 2023. Previous instances closely linked to price volatility increases, according to the firm.
CryptoQuant noted, “This surge coincides with Bitcoin testing the crucial $60,000 support level; a breakout here might push Bitcoin closer to its realized price of $53,000. These inflow levels suggest that substantial amounts of Bitcoin are being absorbed by the market and moved back to exchanges, which has often been seen before major directional shifts.”
It’s not just the volume of deposits that’s notable; their size is increasing too. Average Bitcoin deposits have nearly doubled from 1 BTC to 2 BTC, indicating that this uptick is largely driven by larger investors rather than retail traders.
This kind of trend has previously signaled potential declines in prices.
The report added, “Historically, a spike in average deposits from significant entities tends to be a more bearish indicator than just high inflows, as it reflects a strategic repositioning rather than standard activity.”
Other cryptocurrencies are also experiencing similar trends. Daily inflows for Ethereum hit 1.25 million, and the deposit volume for other altcoins also rose notably, exceeding 45,000 transactions daily. Each of these spikes signals the potential for increased volatility across the crypto market.
“Historically, a surge in altcoin deposit transactions indicates an inflection point for crypto prices and foreshadows increased volatility,” the report highlighted. “This pattern was evident back in 2026 when Bitcoin’s drop from $82,000 in early May to under $58,000 in late June followed a similar increase in altcoin deposits.”
After lingering below $60,000 for a spell, Bitcoin saw a modest rebound this week, climbing 3.5% to trade at $62,886. Currently, BTC remains over 50% higher than its all-time high of $126,080 recorded last October.
Meanwhile, Ethereum rose close to 12% this week, trading at $1,787, which is about 64% below its peak of $4,946.
