Bitcoin Exchange Inflows Surge as CryptoQuant Warns of More Volatility

Deposits of Bitcoin, Ether and altcoins to exchanges have surged at the same time, heightening the risk of bigger swings in the cryptocurrency market.

In a report released on July 3, Julio Moreno, CryptoQuant's head of research, wrote that Bitcoin inflows to exchanges totaled about 49,000 BTC over the past 30 days. He described that as an extreme reading seen only four times this year, when daily deposits neared 50,000 BTC.

Such inflows signal that large amounts of Bitcoin are being moved onto exchanges. Historically, that pattern has appeared before major directional moves.

A rise in average deposit size is a more bearish signal than a simple increase in transfer volume, Moreno wrote. It reflects deliberate repositioning by large participants and has served as a leading indicator of downside pressure.

If support at $60,000 gives way, Bitcoin could fall toward its realized price of about $53,000, he added.

Ether and altcoin deposits also rose. Ether inflows to exchanges climbed above 1.25 million ETH in late June, while the number of altcoin deposits reached about 45,000 earlier this week, the highest level in about two months. Moreno said the current setup resembles the pattern seen just before Bitcoin fell from $82,000 to below $58,000, signaling caution for market participants.