Bitcoin Inflows Surge as Price Hits 7-Month Low

Exchange data reveals a concerning trend for Bitcoin investors as inflows to trading venues topped 9,000 BTC on November 21, coinciding with prices sliding to $80,600 on Coinbase—the weakest showing in seven months. What makes this movement particularly significant is the composition of these deposits: approximately 45% came in chunks of 100 BTC or more, with large transfers reaching 7,000 BTC on a single day. The average deposit size in November rose to 1.23 BTC, marking the largest monthly figure in a year.

According to CryptoQuant’s analysis, these numbers point to more than casual rebalancing—they indicate coins being moved to locations where they can be sold. The concentration of large deposits suggests that major holders, often referred to as ‘whales,’ are increasingly positioning for potential selling activity. This pattern reinforces the current downtrend and creates additional selling pressure at a time when Bitcoin remains down about 28% from its all-time high north of $126,000 reached in October.

While Bitcoin flows toward exchanges, Binance’s stablecoin holdings climbed to a record $51 billion, according to market coverage. Simultaneously, BTC and Ether inflows to exchanges swelled to roughly $40 billion this week, with Binance and Coinbase leading the movement. This divergence reveals a market in transition: traders are parking funds in dollar-pegged tokens while waiting on the sidelines for clearer direction.

The massive build-up in stablecoin reserves means substantial cash is available in the ecosystem, but it remains idle until either sellers step back or buyers return with conviction. This dynamic creates a liquidity buffer that could potentially fuel a recovery, but only if market conditions improve sufficiently to draw these stablecoins back into risk assets like Bitcoin and Ethereum. For now, the parked capital represents both potential buying power and a vote of caution from market participants.

Market watchers remain cautious about the recent recovery, warning that it could represent only a temporary pause rather than a sustained reversal. Analysts have flagged remaining margin positions and suggested a test of lower levels may be necessary to clear out the last pockets of market exposure. Some specifically mentioned that a wick into the $70,000–$80,000 zone would help reset market conditions.

Research firm 10x Research has identified key resistance levels at $92,000 and $101,000 as critical ranges to watch during any rebound attempt. For context, Bitcoin had clawed back above $90,000 and was trading slightly higher at the time of reporting, but the technical picture remains fragile. The analysis suggests that until these resistance levels are convincingly broken, the risk of further declines persists.

While the S&P 500 and Nasdaq were pushing gains as investors bet on potential US Federal Reserve rate cuts—typically a positive catalyst for risk assets—Bitcoin’s performance has diverged from this pattern. Strategists note that the usual close correlation between Bitcoin and the Nasdaq has weakened significantly, with Bitcoin experiencing steeper declines in recent weeks despite supportive macro conditions.

This divergence suggests that cryptocurrency markets are facing unique selling pressures not present in traditional equity markets. Ether and many altcoins also faced higher exchange inflows, with several tokens returning to bear-market lows as selling pressure widened across the digital asset space. The breakdown in correlation indicates that crypto-specific factors, rather than broader risk sentiment, are currently driving market dynamics.

The current market configuration presents a waiting game for participants. While substantial liquidity exists in the form of record stablecoin holdings, and large holders continue moving assets toward exchanges, a meaningful rally will likely require either heavy buying demand or a clear catalyst that draws parked capital back into risk assets. The market sits in a transitional phase where short-term rallies could continue, but deeper dips remain possible as positions get cleared and sellers complete their rotations.

For Bitcoin to mount a sustained recovery, market participants will need to see either a reduction in exchange inflows from large holders or a significant catalyst that encourages stablecoin holders to deploy their capital. Until then, the balance between potential selling pressure from exchange deposits and potential buying power from stablecoin reserves will determine the market’s next significant move.