Bitcoin Whale Deposit Activity Increases Amid Prolonged Bear Market, Reports CryptoQuant
February 21, 2026 — Onchain analytics firm CryptoQuant has reported a notable rise in bitcoin deposit activity by large holders, or “whales,” on cryptocurrency exchanges during the ongoing bear market phase. This trend reflects a shift in selling dynamics and highlights underlying market vulnerabilities.
Large Holders Drive Most Exchange Deposits
According to CryptoQuant’s Friday report, the “exchange whale ratio” has surged to 0.64, the highest level observed since October 2015. This metric indicates that 64% of all bitcoin deposits made to exchanges were from the top 10 largest deposit transactions by volume. Such concentration suggests that large investors are currently leading the selling activity.
The average bitcoin inflow to exchanges has also increased significantly, reaching 1.58 BTC in February 2026. This figure marks the highest monthly average since June 2022, which occurred during the previous bear market.
Exchange Inflows Normalize After Earlier Capitulation
Despite this increase, CryptoQuant notes that overall bitcoin exchange inflows have “normalized after a capitulation spike,” which has alleviated immediate selling pressure. Earlier this month, bitcoin’s price correction to around $60,000 triggered a surge in inflows to exchanges, peaking at roughly 60,000 BTC on February 6—the highest daily volume since November 2024. Since then, inflows have tapered off, dropping approximately 60% to about 23,000 BTC based on a 7-day moving average. While these numbers remain elevated compared to previous months, the sharp sell-off phase appears to have eased.
Altcoins Continue to Face Selling Pressure
The pressure extends beyond bitcoin to altcoins as well. The average daily number of altcoin deposits to exchanges has climbed to roughly 49,000 in 2026, up 22% from about 40,000 daily in the fourth quarter of 2025. CryptoQuant highlights that elevated altcoin deposits often precede heightened market volatility and reflect weakened investor confidence outside of bitcoin.
Declining Stablecoin Inflows Signal Reduced Buying Power
Stablecoin inflows, a key indicator of available buying liquidity, have dwindled markedly. Daily net inflows of Tether (USDT) into exchanges have declined from a one-year high of $616 million in November 2025 to just $27 million recently. In some instances, net flows have turned negative, including a significant $469 million outflow on January 25, 2026. CryptoQuant emphasizes that falling or negative stablecoin inflows suggest that liquidity to purchase crypto assets is increasingly constrained.
Market Implications: Concentrated Selling and Reduced Demand
Overall, CryptoQuant concludes that bitcoin selling pressure has become increasingly dominated by large holders, altcoins are experiencing broad-based sell-offs, and the decline in stablecoins points to shrinking “dry powder” or available buying liquidity. These combined factors create a market environment with limited demand buffers, rendering it vulnerable to further volatility amid the ongoing bear phase.
Disclaimer: This article is for informational purposes only and does not constitute legal, tax, investment, or financial advice. The Block operates independently despite investment affiliations and strives to provide objective coverage of the crypto industry.
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