Large investor deposits drive currency inflows, increasing the average deposit size for BTC and ETH.
Historically, large currency deposits have preceded major sell-offs, while withdrawals from trading platforms have signaled that investors are taking their assets into private management. In this situation of increasing BTC deposits, traders plan to continue selling the digital asset during the ongoing downturn.
BTC sees more selling pressure
BTC fell to a seven-month low of just over $80,000 last week. Although the asset had restored According to CQ’s report, bears remain in control and momentum is weak.
While the cryptocurrency fell to $87,000, the total number of units sent to exchanges rose to a high of 9,000 BTC on November 21. Market experts found that 45% of the total assets sent to trading platforms come from large depositors – investors who deposit 100 BTC or more at a time. The average deposit value increased from 0.6 BTC last week to 1.23 BTC a few days ago, reaching the highest level in a year.
If traders and Bitcoin investors continue to deposit large amounts of BTC on exchanges, it could be harder for the cryptocurrency to recover from this pullback. A new wave of strong demand will be needed to offset supply and send the asset’s price rising again.
ETH and Altcoins are also not safe
In addition to BTC, Ether and other altcoins are also seeing significant exchange deposits. For ETH, overall inflows to trading platforms have not increased much, but deposits are increasingly dominated by significant amounts. Since the second-largest crypto asset fell to $2,900, its daily average exchange deposit has risen to 41.7 ETH, a level not seen in almost three years.
Meanwhile, the total daily number of deposits in the altcoin sector has remained high. Since July, the number of transactions sending altcoins to exchanges has hovered above 40,000. Transactions peaked at 78,000 on October 17. This high deposit activity is consistent with the low price momentum seen in the altcoin sector in this cycle.
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