CryptoQuant reported a sharp increase in deposits to exchanges for Bitcoin, Ethereum, and altcoins, suggesting that volatility in the cryptocurrency market could rise.
According to Julio Moreno, Research Director at CryptoQuant, Bitcoin deposits to exchanges surged to approximately 49,000 BTC on June 30th. Moreno noted that this was a “rare extreme level,” and that daily inflows had only approached 50,000 BTC four times this year.
Moreno stated that inflows of this magnitude have historically been followed by sharp increases in price volatility and strong directional movements. According to Moreno, at current levels, the market is trying to absorb the large amount of Bitcoin being moved to exchanges, a pattern that has been observed in the past before significant price movements.
The report noted that recent Bitcoin inflows have primarily come from large investors, not small ones. Moreno stated that the average Bitcoin deposit amount on exchanges has increased from approximately 1 BTC to 2 BTC, indicating that whales and institutional investors are moving larger amounts of Bitcoin to exchanges.
According to CryptoQuant, an increase in the average deposit amount is considered a stronger bearish signal than high inflow volume alone. This is because large investors moving funds to exchanges generally signifies a “conscious position shift” and has historically served as a leading indicator of downward price pressure.
The surge in Bitcoin inflows coincided with a period when the price tested the critical $60,000 support level. Moreno stated that if this level is broken, Bitcoin could retrace towards its realized price of approximately $53,000. Bitcoin was trading at around $62,180 at the time of writing, while US spot Bitcoin ETFs recorded net inflows of $221.7 million on Thursday, ending a 10-day outflow streak.
A similar trend was observed in Ethereum. According to CryptoQuant data, deposits into Ethereum exchanges exceeded 1.25 million ETH by the end of June. Moreno stated that this indicates increased selling pressure.
According to Moreno, the simultaneous surge in exchange inflows seen in both Bitcoin and Ethereum points to a broader risk-aversion trend rather than weakness specific to a single asset. This increases the likelihood of overall volatility in the cryptocurrency market.
There was also a sharp increase in altcoin deposits to exchanges. The number of altcoin deposits reached approximately 45,000 earlier this week, the highest level in the last two months. Moreno stated that this level historically signals a “turning point” in terms of prices.
Moreno recalled that a similar surge was seen before Bitcoin fell from around $82,000 in early May to below $58,000 by the end of June. The CryptoQuant executive argued that the current scenario, with Bitcoin testing the $60,000 support level again, resembles the pattern before the previous downturn, and that investors should be more cautious.
