Selling Storm: Bitcoin Whales Could Drive Prices Down Further, Experts Warn
Overview
Recent data indicates a significant increase in Bitcoin inflows to exchanges, coinciding with a notable drop in prices. This trend raises concerns among experts about the potential for further declines in Bitcoin’s value.
What Happened?
On November 21, inflows to trading platforms surpassed 9,000 Bitcoin as prices fell to a seven-month low on Coinbase. Reports indicate that approximately 45% of these deposits were made in increments of 100 BTC or more, with a single day witnessing large transfers totaling 7,000 BTC. The average deposit size for November increased to 1.23 BTC, marking the largest monthly figure in a year. These figures suggest that the movement of coins is not merely for rebalancing but indicates a shift towards selling.
In parallel, Binance’s stablecoin holdings reached a record high, with approximately $51 billion reported. During the same timeframe, Bitcoin and Ether inflows to exchanges surged to around $40 billion, primarily driven by Binance and Coinbase. Traders often utilize stablecoins to remain on the sidelines, implying that while cash is available, it remains unutilized until market conditions change.
As Bitcoin prices dropped to around 87,000, the trend of large deposits (100+ BTC) accounted for 45% of all inflows, reinforcing the downward momentum as significant holders moved BTC to exchanges.
Analysts Eye Further Pullback
Market analysts are cautioning that the recent price recovery may be temporary. They are highlighting the existence of remaining margin positions and suggesting that a dip into the $70,000 to $80,000 range could help eliminate the last remaining exposure. Resistance levels of $92,000 and $101,000 have been identified as crucial points to watch during any potential rebound. Although Bitcoin had managed to rise above $90,000 at the time of reporting, it remained approximately 28% below its all-time high.
Simultaneously, stock market trends showed mixed signals, with the S&P 500 and Nasdaq experiencing gains amid speculation about a potential US Federal Reserve rate cut. However, the historical correlation between Bitcoin and the Nasdaq has weakened, with Bitcoin’s decline being steeper in recent weeks. Ether and various altcoins also experienced increased inflows to exchanges, with some tokens reaching bear-market lows amid broader selling pressure.
Impact on the crypto market
- The rise in Bitcoin inflows to exchanges indicates a potential increase in selling activity.
- Large holders moving assets to exchanges may reinforce downward price pressure.
- The increase in stablecoin holdings suggests liquidity is available but not currently entering the market.
- Analysts warn that the market may be poised for a deeper pullback, depending on remaining exposure.
- Mixed signals from traditional markets could influence investor sentiment and crypto market dynamics.
Updated: 11/27/2025, 4:30:29 PM
