Bitcoin deposits to exchanges reached 9,000 BTC on November 21, with the average deposit size climbing to 1.23 BTC—the highest in 12 months, according to CryptoQuant. Large holders contributed 45% of total inflows, with deposits of 100 BTC or more driving the increase. Ethereum deposits also rose, averaging 41.7 ETH, a three-year high, as both cryptocurrencies face selling pressure.

Bitcoin has dropped more than 35% from its early October all-time high, falling below its 365-day moving average of $102,000. CryptoQuant's analysis examines whether the cryptocurrency market has entered a bear phase or remains in a deep correction within the current bull cycle. The asset declined to below $81,000 before recovering to $87,000.

Trader Arthur Hayes argues that Bitcoin's next rally depends on the U.S. government ending its shutdown and releasing liquidity. The Treasury General Account currently holds approximately $150 billion above its $850 billion target, creating a negative liquidity balance that will reverse when operations resume.