Summary Points
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Large deposits of Bitcoin (BTC) and Ethereum (ETH) to exchanges are surging, indicating an impending sell-off as traders respond to the ongoing market downturn.
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Bitcoin recently plunged to a seven-month low of over $80,000, with increasing exchange deposits signaling traders’ intentions to sell, complicating any potential recovery.
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Significant investor activity is evident, with 45% of BTC deposits coming from large transactions (100 BTC or more), pushing the average deposit value to the highest level in a year.
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Ethereum and altcoins are also witnessing substantial exchange deposits, particularly as ETH’s daily average rises to levels not seen in three years, reflecting negative price momentum.
Bitcoin Faces Pressure Amid Increased Exchange Deposits
Bitcoin continues to face downward pressure, as recent trading trends highlight growing concerns among investors. A report from CryptoQuant reveals that large traders are increasingly depositing Bitcoin on exchanges. This trend often precedes significant sell-offs, leading to heightened uncertainty around the digital currency’s future.
Last week, Bitcoin fell to a seven-month low of just over $80,000. Despite a slight recovery to the $91,000 range, analysts warn that the bears remain in control. A notable influx of deposits, with 9,000 BTC sent to exchanges on November 21 alone, indicates that traders are preparing to sell. Currently, large deposits, defined as 100 BTC or more, account for approximately 45% of total inflows.
Moreover, the average value of deposits has surged from 0.6 BTC to 1.23 BTC, marking the highest level seen in a year. If this trend continues, Bitcoin may struggle to recover from its current downturn. A substantial increase in demand will be essential to absorb the growing supply on exchanges.
Ethereum and other altcoins are not immune to this trend either. While ETH exchange inflows have remained stable, larger deposits have contributed to a noticeable shift. Since Ethereum’s price fell to $2,900, average daily deposits increased to 41.7 ETH. This level marks a peak not observed in nearly three years.
Additionally, altcoin transactions to exchanges have remained elevated. Since July, over 40,000 daily transactions have been recorded, with a peak of 78,000 on October 17. This activity reflects a broader trend of low price momentum across the altcoin sector.
As these trends unfold, the cryptocurrency landscape may see substantial impacts on value propositions and technological developments. Investors will watch closely to gauge how these shifts affect the future of digital currencies.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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