Bitcoin may be nearing its cycle bottom following significant deleveraging and capitulation, according to Bitfinex Alpha. Entity-Adjusted Realised Losses have surpassed $400 million, exceeding levels recorded at previous market troughs. Reduced selling pressure indicates exhaustion among short-term holders, the analysis shows.

The number of XRP wallets holding at least 100 million tokens declined by 20.6% over eight weeks, with 569 wallets exiting this tier. Despite the reduction in wallet count, the remaining large holders now collectively control 48 billion XRP. This level marks a seven-year high in supply concentration among major addresses.

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.