Bitcoin dropped below $90,000 as on-chain data shows large holders increasing exchange deposits while smaller investors maintain steady activity. The divergence marks a shift in market positioning after nearly two months of price correction.
What Happened: Whale Exchange Flows Double
Bitcoin fell below the $90,000 threshold as whale activity on Binance surged, according to a CryptoQuant analysis by researcher Darkfost. Transfers exceeding 100 BTC to the exchange have increased substantially, with the 90-day average of whale inflows nearly doubling since Bitcoin's most recent all-time high. The metric now approaches 4,000 BTC, up from roughly 2,000 BTC during the previous peak.
The price decline follows an extended correction spanning nearly two months.
Open Interest in Bitcoin derivatives contracts dropped from $47.5 billion to approximately $29 billion, reflecting reduced speculative positioning across futures markets.
The contraction suggests either deliberate profit-taking or forced liquidations as prices declined.
Retail investor flows to exchanges remained relatively flat during the same period, showing minimal directional change compared to the sharp increase in whale deposits. The 3-day chart indicates Bitcoin broke below both the 50-day and 100-day simple moving averages before testing the 200-day SMA, a level that historically separates extended uptrends from deeper corrections.
Also Read: Europol Shuts Down $1.4B Crypto Mixer Cryptomixer, Seizes $27M In Bitcoin
Why It Matters: Divergent Investor Behavior
The data reveals a clear split between investor classes. Large holders moved to defensive positions through increased exchange deposits, which typically signal preparation for hedging, liquidation or portfolio rebalancing.
Darkfost's analysis indicates this behavior intensified as uncertainty grew, with whales adjusting exposure while retail participants showed limited reaction to deteriorating technical conditions.
Such divergence often appears during transitional market phases when sophisticated holders act on early signals before broader sentiment shifts. The current price action around the 200-day SMA will determine whether Bitcoin maintains its long-term trend structure or moves toward deeper retracement levels at $78,000 and $72,000. A sustained move above $92,000-$95,000 would be required to invalidate the current bearish structure.
Read Next: Bitcoin Plunges Below $84K as Asian Selloff Triggers $600M in Liquidations