Bitcoin News Today: Large BTC Deposits to Coinbase Signal Selling Pressure as Bitcoin Dips Below $115k

A significant surge in selling pressure originating from Coinbase, one of the world’s largest cryptocurrency exchanges, has drawn intense scrutiny in the Bitcoin market, with analysts attributing recent price adjustments to large-scale Bitcoin inflows onto the platform. Pseudonymous on-chain analyst “Murphy” highlighted a critical pattern: two major deposits totaling 8,100 BTC—equivalent to hundreds of millions of dollars—were transferred to Coinbase within hours, signaling potential liquidation activity. The first deposit of 4,950 BTC coincided with Bitcoin’s decline toward $115,000, followed by a second transfer of 3,169 BTC an hour later. Such concentrated movements from wallets to exchanges are typically interpreted as a precursor to selling, as traders and large holders often move assets to exchanges when preparing to offload them [1].

Coinbase’s role in this dynamic is pivotal. As a regulated exchange favored by institutional investors, its infrastructure and compliance framework make it a hub for significant trading activity. Large deposits here often carry more weight than retail transactions, as they may reflect institutional rebalancing or strategic liquidation. The sudden influx of Bitcoin to Coinbase exacerbates liquidity challenges, as deep order books can be overwhelmed by a surge in sell orders, leading to rapid price depreciation [1]. Market sentiment also amplifies the impact: on-chain data tracking such inflows can trigger fear and uncertainty, prompting panic selling and further downward momentum [1].

The analysis provided by Murphy underscores the importance of monitoring exchange flows to gauge market phases. If these large-scale deposits represent the final wave of selling pressure, the market could stabilize or rebound. However, sustained inflows to Coinbase or other exchanges would prolong the bearish trend. Conversely, outflows from exchanges—indicating assets being moved to cold storage—could signal a potential accumulation phase [1]. The absence of further large deposits is a key factor in determining whether the current price adjustment has reached its conclusion.

Investors are advised to remain vigilant amid such volatility. Strategies include diversifying portfolios to mitigate risks tied to single assets, practicing risk management (e.g., stop-loss orders), and avoiding over-leveraging. On-chain data, while accessible through simplified metrics on various platforms, offers early signals for market shifts. Cross-referencing pseudonymous analysts’ insights with broader market fundamentals remains crucial for informed decision-making [1].

While the immediate focus remains on Coinbase’s role, broader factors could influence Bitcoin’s trajectory. Macroeconomic conditions, regulatory developments, and whale activity beyond Coinbase all contribute to market dynamics. For now, the on-chain indicators highlight a critical juncture: whether this episode of selling pressure will dissipate or evolve into a prolonged correction. The coming weeks will provide clarity on whether Bitcoin can stabilize following this concentrated selling event.

Source: [1] [Unveiling the Shocking Coinbase Selling Pressure Impact on Bitcoin] [https://coinmarketcap.com/community/articles/6883b4868fc05d4d2ae5da50/]