Summary

  • According to CryptoQuant, Bitcoin deposits surged to nearly 50,000 BTC daily last week.
  • The average deposit size doubled to around 2 BTC, indicating significant activity from institutional and whale investors.
  • This level of deposits has historically preceded sharp price fluctuations.

Bitcoin deposits to centralized exchanges, which often signal potential sell-offs, have risen sharply as the price of BTC dipped below $60,000, according to blockchain analytics firm CryptoQuant.

In the past week, daily deposits of the leading cryptocurrency reached nearly 50,000 BTC, achieving this figure for only the fourth time this year. Previous instances of such high deposits have coincided with notable price volatility, the firm reported.

The report from CryptoQuant stated, “The spike coincides with Bitcoin testing the critical $60K support level, which, if breached, could take Bitcoin towards $53K, the realized price. 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.”

Notably, it’s not just the number of deposits that has increased, but also their size. The average deposit size rose from 1 BTC to 2 BTC, suggesting that the influx is primarily driven by whales and institutional investors rather than retail traders, according to the firm.

Historically, this trend has often indicated a potential downward price shift. The report emphasized, “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.”

Other cryptocurrencies were also affected, with Ethereum experiencing daily inflows that peaked at 1.25 million, while altcoin deposits surged to over 45,000 transactions per day. These increases further suggest a likely period of heightened volatility in the crypto market.

“Historically, surges in altcoin deposit transactions have marked inflection points for crypto prices and signaled increased volatility ahead,” the report noted. “This signal already played out precisely in 2026: 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.”

After a brief period below $60,000, Bitcoin has seen a moderate recovery this week, climbing 3.5% to trade at $62,886. Currently, BTC is just over 50% lower than its all-time high of $126,080 reached in October.

Meanwhile, Ethereum rose nearly 12% this week, trading at $1,787, which is about 64% below its all-time high of $4,946.