Bitcoin Market Enters Mid-Stage Bear: Large Holders Dominate Selling Activity

CryptoQuant's latest report highlights the current state of the bitcoin market, which it believes has entered its mid-stage bear market phase. One key indicator is the exchange whale ratio, which measures the proportion of the top ten depositors on exchanges. The ratio has risen to 0.64, its highest level since October 2015, indicating that large holders are leading the selling activity.

The average single deposit amount of bitcoin on exchanges in February has also reached a record high of 1.58 BTC, which is similar to what was seen during the previous bear market. However, CryptoQuant notes that while the inflow to exchanges remains higher than in previous months, it peaked at 60,000 BTC on February 6 and has since dropped to a 7-day average of around 23,000 BTC.

Another key trend is the decrease in stablecoin inflows. The daily average net inflow of USDT plummeted from $616 million in November to just $27 million recently. In fact, there was even a net outflow of $469 million on January 25. This reduction in stablecoin inflows suggests a decline in marginal buying power in the market.