Bitcoin Bear Market Phase Dominated by Whale-led CEX Deposits, Stablecoin Inflows Plummet

Bitcoin fell to a low of $60,033 in early February 2026 amid a convergence of macroeconomic, regulatory, and crypto-native factors. The decline marked the steepest correction since the FTX collapse and was driven by ETF outflows, stablecoin contraction, mining losses, and whale accumulation behavior according to Amber Data analysis. Institutional de-risking and crypto-specific capitulation exacerbated structural fragility, with the Crypto Fear & Greed Index reaching its lowest reading ever at 5 as data shows.

The current bear market phase is being shaped by large holders driving most exchange inflows. The exchange whale ratio rose to 0.64, the highest level since 2015, suggesting concentrated selling pressure from large investors according to CryptoQuant data. The average bitcoin exchange inflow climbed to 1.58 BTC in February, a level not seen since June 2022 as reported.

Stablecoin inflows have contracted significantly, reflecting weakened investor confidence. Daily net Tether (USDT) inflows into exchanges dropped from a one-year high of $616 million in November 2025 to just $27 million recently according to exchange data. This contraction signals diminished dry powder for market participants and a shrinking buffer for further volatility.

Why Is Whale Activity So Prominent in This Bear Market?

Large investors are leading the sell-off activity, with 64% of exchange inflows attributed to top 10 deposits by volume according to CryptoQuant. This trend suggests a shift in market dynamics, where whales dominate selling behavior. Following Bitcoin's correction in early February, total exchange inflows spiked to around 60,000 BTC on February 6 but have since declined to about 23,000 BTC on a 7-day moving average as data indicates.

The acute sell-off phase appears to have eased, but elevated exchange flows remain. This indicates that while immediate selling pressure has normalized, the broader market remains fragile. The exchange whale ratio has not seen such high levels since 2015, underscoring the unique nature of the current bear phase according to analysis.

What Do Altcoin Inflows Indicate About Market Sentiment?

Altcoin selling pressure has reached -$209 billion, the highest level in five years, suggesting a widespread exodus of retail and speculative capital as Decrypt reports. This pressure has been accompanied by a notable uptick in stablecoin flows, with Binance now holding nearly 65% of all exchange stablecoin liquidity according to data.

Average daily altcoin deposits to exchanges have surged by 22% in early 2026 compared to Q4 2025, reaching 49,000 transactions according to MEXC data. This increase indicates rising selling pressure as investors move assets to exchanges in anticipation of volatility or to liquidate holdings as reported.

The rise in altcoin deposits reflects a market mood turning bearish. When altcoins are moved to exchanges, they are typically positioned for selling according to analysis. This trend implies that traders are preparing for potential price corrections, especially in a market where demand has not increased in parallel with inflows.

What Are Analysts Watching Next?

Analysts are closely monitoring whether the current correction is a temporary pullback or a structural shift in the crypto market according to Amber Data. The ETF-era feedback loop—a self-reinforcing mechanism of outflows reducing on-exchange liquidity—has introduced new fragility not seen in prior bear markets as analysis shows.

The decline in stablecoin flows and the dominance of whale-led selling are critical indicators for assessing market resilience. The current environment suggests limited demand buffers, with only altcoins showing real-world adoption likely to survive a Darwinian shakeout according to Decrypt.

Investors are also watching the behavior of institutional allocators, as the distinction between a leverage flush and a structural repricing will shape the path forward. If market structure stabilizes near $69,000–$70,000, it could signal a bottoming process as data indicates.