CMC News

$BTC Whale Deposits Signal Potential for Further Price Decline

#CryptoQuant analysts warn that continued selling pressure from $BTC whales could push the asset lower. Exchange inflows reached a peak of 9,000 $BTC on Nov. 21 as the price declined to $80,600 on Coinbase, marking its lowest level in seven months.

Large deposits of 100 $BTC or more accounted for 45% of total coins sent to exchanges. The whale cohort sent as much as 7,000 Bitcoin to exchanges on a single day, indicating preparation to sell.

Investors and traders continue to sell #Bitcoin during the current price drawdown, putting further downward pressure on the asset, the analytics firm stated. The average Bitcoin deposit value reached 1.23 $BTC in November, the highest level in a year.

CryptoQuant noted on Wednesday that stablecoin reserves on exchanges hit a record $51 billion, the highest in its history. $BTC and $ETH inflows climbed to $40 billion this week, with major volume coming through two leading platforms.

High stablecoin reserves on exchanges indicate rotation from Bitcoin and #altcoins into dollar-pegged assets. Capital often sits in these assets until market participants are ready to re-enter the market.