Bitcoin deposits to centralized exchanges spiked to nearly 50,000 BTC per day in the last week as Bitcoin fell below $60,000, according to a Thursday report from blockchain analytics firm CryptoQuant. The surge marks the fourth time this year deposits have reached this level, a pattern that has historically preceded significant price volatility. CryptoQuant warned that if Bitcoin breaches the critical $60K support level, it could decline toward $53K, the realized price, as the market absorbs large volumes of Bitcoin being repositioned to exchanges.
Bitcoin Deposits Reach 50,000 BTC Daily
Bitcoin deposits to centralized exchanges reached nearly 50,000 BTC per day in the last week, according to CryptoQuant data. This level has been reached only four times this year, and in all previous instances, it led to a significant increase in price volatility.
The Thursday report noted that the spike coincides with Bitcoin testing the critical $60K support level. "At these inflow levels, the market is absorbing a large volume of Bitcoin being repositioned to exchanges, a pattern that has historically preceded significant directional moves," the report stated.
Average Deposit Size Doubles to 2 BTC
The average Bitcoin deposit approximately doubled from 1 BTC to 2 BTC during the period, according to CryptoQuant. The firm identified this as an indicator that the deposit surge is being driven by whales and institutions rather than retail traders.
CryptoQuant stated that historically, a spike in average deposit size from larger entities is a more bearish signal than high inflow volume alone, as it indicates deliberate repositioning rather than routine activity. The firm noted that in the past, this indicator has preceded downward price movement.
Ethereum and Altcoin Deposits Surge
Ethereum daily inflows peaked at 1.25 million per day, according to the report. Altcoin deposit transactions also jumped considerably to more than 45,000 per day.
CryptoQuant stated that historically, surges in altcoin deposit transactions have marked inflection points for crypto prices and signaled increased volatility ahead. The report noted that Bitcoin's decline from $82K in early May to below $58K in late June was preceded by a similar spike in altcoin deposits above 45K.
Bitcoin Rebounds to $62,886
After spending time below $60,000, Bitcoin rebounded moderately this week, jumping 3.5% to trade at $62,886. Bitcoin is now just over 50% off its October all-time high of $126,080.
Ethereum gained nearly 12% this week to change hands at $1,787, approximately 64% off its all-time high of $4,946.
FAQ
What caused Bitcoin deposits to spike in the last week?
Bitcoin deposits to centralized exchanges spiked to nearly 50,000 BTC per day in the last week as Bitcoin fell below $60,000 and tested the critical $60K support level, according to CryptoQuant data.
How much did the average Bitcoin deposit size increase?
The average Bitcoin deposit approximately doubled from 1 BTC to 2 BTC during the period, indicating activity from whales and institutional investors rather than retail traders, according to CryptoQuant.
What are the current prices of Bitcoin and Ethereum?
Bitcoin is currently trading at $62,886 after gaining 3.5% this week, while Ethereum is at $1,787 after gaining nearly 12% this week, according to the report.
