Liquidity shortages and dominant whale actions leave the crypto market exposed to further declines.
The latest report from the on-chain analytics platform CryptoQuant, based on February 2026 data, reveals that transfers by so-called “whale” investors — major players in the crypto market — have intensified selling pressure on exchanges, deepening the ongoing bear market for Bitcoin. The landscape is further complicated by a sharp decline in stablecoin liquidity and a surge in deposit activity among altcoins, which together paint a picture of heightened fragility across cryptocurrency markets. Against this backdrop, market mood remains pessimistic, with risk appetite suppressed and no clear wave of new demand on the horizon.
Whale Activity Drives Persistent Sell Pressure on Exchanges
A seismic shift has taken place in the flow of funds across crypto exchanges, especially affecting Bitcoin, the market’s bellwether. Data from CryptoQuant indicates that the Exchange Whale Ratio has surged to 0.64 — its highest reading since October 2015. This figure demonstrates that a striking 64% of all Bitcoin deposited on exchanges came from the ten largest transactions, leaving little doubt about the outsized impact of institutional or high-net-worth sellers fueling the downward momentum.
ContentsWhale Activity Drives Persistent Sell Pressure on ExchangesAltcoins Face Broad Sell-Off and Drying Liquidity
The average daily inflow of Bitcoin to exchanges climbed to 1.58 BTC in February, effectively resetting to levels last seen during the June 2022 bear market. Following a correction at the start of February that took Bitcoin’s price down toward the $60,000 mark, February 6 saw a dramatic spike, with 60,000 BTC pouring into exchanges in a single day. Although this “capitulation” wave subsided, and daily inflows dropped to 23,000 BTC, the persistently elevated levels remain a caution signal for investors, suggesting that selling pressure is unlikely to disappear soon.
This trend shows that market participants are still inclined to cash out, with large holders controlling the market’s direction. The growing dominance of whales is pushing smaller investors to the sidelines, increasing market volatility and underscoring the strongly concentrated nature of recent trading.
Altcoins Face Broad Sell-Off and Drying Liquidity
Altcoins, representing all cryptocurrencies outside of Bitcoin, have been gripped by an even more pronounced wave of selling since the start of 2026. CryptoQuant analysts note that the average daily altcoin exchange deposit figure has surged by 22% since the fourth quarter of 2025, reaching 49,000 from a previous average of 40,000. Such a rapid increase in altcoin deposits typically signals declining confidence and often foreshadows heightened volatility ahead. As Bitcoin’s path grows less certain, many investors are pulling back from riskier altcoins in search of safer ground.
Meanwhile, the stablecoin segment — which acts as a key source of buying power — has entered a drought. After peaking with $616 million in net daily Tether (USDT) inflows in November 2025, recent weeks have seen that figure nosedive to just $27 million. At one point in late January, $469 million was withdrawn from stablecoins in a single day, a stark sign that market “dry powder” — cash waiting to buy — is rapidly depleting. The reversal from strong inflows to net outflows in stablecoins indicates not only an exodus from cryptocurrencies but also a broader withdrawal of capital from the ecosystem itself.
With these liquidity buffers eroding, the market is becoming ever more vulnerable to external shocks. Ongoing whale-driven selling in Bitcoin, widespread offloading in altcoins, and the collapse in stablecoin funding all point toward a bearish phase that looks set to linger. Without fresh capital entering the system, the structure of the market remains exposed to further downside risks.
“We typically see widespread altcoin distributions when market confidence is waning, and this often marks the beginning of more turbulent swings,” CryptoQuant analysts emphasized.
In summary, the report underlines how concentrated selling by big players, waning liquidity, and evaporating risk appetite are reshaping the dynamics of the crypto market. Until an inflow of new money materializes or confidence rebounds, the prevailing bearish sentiment appears likely to persist. All eyes are now on whether any catalyst can entice sidelined capital back in and revive market momentum.
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