Bitcoin Exchange Inflows Surge, CryptoQuant Warns of Further Volatility

Bitcoin, Ether and altcoin inflows to exchanges have surged simultaneously, heightening the risk of bigger swings in the cryptocurrency market.

In a report dated July 3, CryptoQuant Head of Research Julio Moreno said Bitcoin inflows to exchanges reached about 49,000 BTC over the past 30 days. He described that as an extreme level seen only four times this year, when daily inflows came close to 50,000 BTC.

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

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

If support at $60,000 gives way, Bitcoin could fall to its realized price of about $53,000, according to Moreno.

Ether and altcoin inflows also increased together. Ether inflows to exchanges rose above 1.25 million ETH in late June, while the number of altcoin deposits climbed to 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.