.png){kind=logo}
Bitcoin shows signs of a developing risk-off structure as whale deposits to Binance surge and large USDT burns drain liquidity from the market. CryptoQuant reports that elevated exchange inflows and stablecoin burn events now align with ongoing price volatility. Together, these signals point to tightening liquidity and a more defensive backdrop beneath Bitcoin’s recent movements.
CryptoQuant data shows a sharp rise in whale deposits to Binance. Recent inflows exceeded prior peaks recorded in October, November, and December, when deposits barely crossed 400 BTC.
The earlier spikes occurred at a time when the price reached its temporary peak of $124,000 in mid-October. After that peak, Bitcoin entered a sustained correction phase. Historical evidence shows that whale investors tend to use large exchange inflows as a signal for their upcoming Bitcoin sales instead of executing long-term investment strategies.
The magnitude of the current inflow suggests that large entities may reduce exposure at prevailing price levels. Meanwhile, the Whale Screener model tracked netflows across more than 100 major wallets. It recorded sharp BTC inflows to spot exchanges on February 4, 5, and 7.
Each of those sessions saw deposits ranging between $650 million and $850 million. Repeated transfers of that scale commonly align with distribution phases. Sustained deposits indicate that large holders actively reposition rather than hold passively through volatility.
At the same time, stablecoin liquidity has contracted. On February 9, nearly $3.5 billion in USDT was burned on the Ethereum network. Earlier, on January 20, another burn of about $3 billion took place.
This January event preceded Bitcoin’s drop from above $90,000 to below $67,000 by early February. USDT burns remove stablecoin liquidity from circulation. As a result, less capital remains available to absorb selling pressure.
When large liquidity withdrawals coincide with rising exchange deposits, the balance between supply and demand can tilt toward downside pressure. The alignment of these events now forms a more cautious market structure.
Liquidity appears to leave the system while exchange balances among large holders increase. Historically, this combination has not aligned with strong upside continuation. Instead, it has often preceded renewed selling pressure.
Despite those risk signals, some large holders have resumed buying. Whale wallets accumulated about 53,000 Bitcoin in the past week. This marked their largest buying spree since November.
According to Glassnode, wallets holding more than 1,000 Bitcoin added over $4 billion worth of the token during that period. This buying interrupted months of divestment. Bitcoin still trades roughly 40% below its October peak.
Brett Singer, head of sales at Glassnode, said the renewed accumulation can slow a downturn. He noted that broader capital inflows remain necessary to sustain recovery. Data show that, excluding exchange-traded funds and exchanges, large holders have acted as net sellers over the past year.
Also Read: Bitcoin Fails to Hold Support: Is a Bigger Drop Next?
Since mid-December, more than 170,000 Bitcoins, worth about $11 billion, have left those wallets. The trend reflects ongoing caution among major players. While recent accumulation steadied prices after a steep drawdown, most other investors have stayed on the sidelines.
The convergence of elevated whale inflows, major USDT burns, and repeated spot exchange deposits now shapes a defensive structure. Will new stablecoin liquidity return in time to counterbalance rising exchange inflows?
CryptoQuant data shows rising whale deposits to Binance alongside major USDT burns, signaling tightening liquidity. Although Glassnode reports fresh whale accumulation, broader capital inflows remain limited. Until exchange inflows ease and stablecoin liquidity expands, Bitcoin may stay exposed to renewed downside pressure.
