Cryptoquant Reports Spike in Bitcoin and Ethereum Selling Pressure

Bitcoin’s price surge has prompted significant changes in selling dynamics for both Bitcoin and Ethereum. Latest reports indicate heavy withdrawals to exchanges, hinting at profit-taking and potential market volatility ahead.

Bitcoin’s Historic Rally Sparks Exchange Transfers

In an interesting new development around cryptocurrencies, data from Cryptoquant has emerged suggesting an uptick in selling pressure for Bitcoin and Ethereum as their prices soar. Last week, Bitcoin hit a staggering all-time peak at nearly $123,000, prompting large holders and miners to significantly increase their transfers to exchanges. This phenomenon, noted by the on-chain analytics firm, is drawing a lot of attention in the crypto community.

Miner Outflows Indicate Selling Trends

According to Cryptoquant’s Weekly Crypto Report, there was a dramatic spike in Bitcoin exchange inflows, which surged from 19,000 BTC daily to a whopping 81,000 BTC as of July 15. This rise represents the largest single-day deposit since February 26. It’s clear that these large amounts are driven mainly by crypto ‘whales’— those who hold large quantities of Bitcoin. Transfers from these whales to exchanges ramped up from 13,000 BTC to 58,000 BTC during the same period, indicating that profit-taking was a key motive behind these transactions.

Ethereum Exchange Activity Surges

Moreover, miners themselves turned out to be significant sellers recently. On July 15, outflows from miners hit 16,000 BTC, which Cryptoquant classified as an “extreme outflow”—the highest figure since April 7. This suggests that miners are not hesitant to sell their assets when the market peaks. It was also noted that nearly all of this Bitcoin made its way directly to exchanges, bolstering the indication that miners were indeed selling at the peak price throughout this rally.

Muted Activity in Altcoins

What’s notable is that Ethereum has also been witnessing hefty inflows. As per Cryptoquant, daily ETH inflows reached an impressive nearly 2 million ETH on July 16, effectively doubling from the previous week and reaching levels not seen since February. This follows a remarkable 131% rally since early April, showcasing how Ethereum too has been part of this upward market momentum. It’s interesting to see how these two major cryptocurrencies are behaving amidst the current market dynamics.

Complex Market Dynamics

In contrast to the activity seen with Bitcoin and Ethereum, the selling pressure for altcoins remains relatively low, with daily transactions sending altcoins to exchanges summing up to just 31,000. This figure is significantly below the previous highs of around 120,000 transactions witnessed during prior market peaks in March and December 2024. Cryptoquant researchers pointed out that this relatively quiet trend in the altcoin market implies that investors are not in a rush to sell their holdings, despite the broader rally.

Looking Ahead in Cryptocurrency Markets

All things considered, Cryptoquant’s analysis points toward the notion that increased exchange inflows—especially from larger entities and miners—often precede bouts of heightened price volatility. The significant gap between the robust selling of Bitcoin and Ethereum and the subdued activity in the altcoin arena paints a rather intricate picture of the current cryptocurrency market. The report indeed invites further discussion about where the market is heading next and what this all means for investors.

To summarise, the latest data from Cryptoquant highlights a marked increase in Bitcoin and Ethereum selling pressure following record price surges. Large holders and miners have contributed to significant exchange inflows, while aldcoin activity remains quiet. Observers will be keen to see how this trends as we move forward, particularly in terms of price volatility and shifts across different crypto assets.