Bitcoin Exchange Whale Ratio Is Rising: Why This Is Alarming


On-chain
data
shows
the
Bitcoin
Exchange
Whale
Ratio
has
been
on
the
up
recently,
a
sign
that
could
prove
to
be
bearish
for
the
asset’s
price.

60-Day
MA
Bitcoin
Exchange
Whale
Ratio
Has
Been
Rapidly
Climbing
Recently

As
pointed
out
by
an
analyst
in
a
CryptoQuant
Quicktake

post,
the
Exchange
Whale
Ratio
has
seen
sharp
growth
recently.
The
“Exchange
Whale
Ratio”
is
an
indicator
that
keeps
track
of
the
ratio
between
the
sum
of
the
top
10
transfers
going
to
exchanges
and
the
total
exchange
inflow.

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The
ten
largest
exchange
inflows
can
be
assumed
to
be
coming
from
the

whales,
who
are
entities
that
carry
the
largest
holdings
on
the
network
and
thus,
also
the
most
influence
in
the
market.

The
Exchange
Whale
Ratio
basically
tells
us
about
how
the
exchange
inflow
activity
of
these
humongous
investors
compares
against
that
of
the
entire
Bitcoin
market.

When
the
value
of
this
metric
is
high,
it
means
the
top
10
exchange
inflows
are
making
up
for
a
significant
part
of
the
market
deposits.
Generally,
investors
make
deposits
whenever
they
want
to
make
use
of
one
of
the
services
that
these
platforms
provide,
which
can
include
selling.

As
such,
the
indicator
having
a
high
value
could
imply
these
large
holders
are
contributing
a
high
amount
of
selling
pressure
right
now.
Naturally,
this
kind
of
trend
can
be
bearish
for
the
asset.

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On
the
other
hand,
the
ratio
being
low
suggests
the
whales
are
making
up
for
a
relatively
healthy
part
of
the
total
exchange
inflows,
which
can
have
a
bullish
effect
on
the
price.

Now,
here
is
a
chart
that
shows
the
trend
in
the
60-day
moving
average
(MA)
of
the
Bitcoin
Exchange
Whale
Ratio
over
the
past
few
years:

Looks like the 60-day MA value of the metric has been trending up over the last few months | Source: CryptoQuant

As
is
visible
in
the
above
graph,
the
60-day
MA
Bitcoin
Exchange
Whale
Ratio
has
been
climbing
up
on
a
steep
upwards
trajectory
during
the
past
few
months.
This
would
suggest
that
the
whales
have
been
increasing
their
share
of
the
exchange
inflows
recently.

The
rise
in
the
indicator
has
come
as
the
price
of
the
cryptocurrency
has
enjoyed
growth
and
has
set
a

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new
all-time
high
(ATH).
In
the
chart,
the
quant
has
highlighted
what
happened
during
the
last
few
times
when
the
metric
witnessed
a
similar
rally.

It
would
appear
that
the
price
of
the
cryptocurrency
has
generally
seen
a
steep
drawdown
whenever
the
Exchange
Whale
Ratio
has
grown
to
high
values.
So
far,
BTC
has
yet
to
see
a
similar
decline,
although
its
price
has
lost
its
bullish
momentum
and
has
been
moving
sideways
recently.

“My
guess
is
that
this
hasn’t
happened
because
of
the
huge
demand
for
spot
ETFs,”
notes
the
analyst.
It
now
remains
to
be
seen
how
long
the
demand
will
be
able
to
absorb
this
increasing
selling
pressure
from
the
whales
and
if
the
price
would
succumb
in
a
similar
fashion
as
in
the
past
when
buying
does
dry
up.

BTC
Price

At
the
time
of
writing,
Bitcoin
is
floating
around
$65,600,
down
more
than
5%
over
the
last
seven
days.

The price of the coin has continued to be stuck in its consolidation range recently | Source: BTCUSD on TradingView

Featured
image
from
Dall-E,
CryptoQuant.com,
chart
from
TradingView.com

Go to Source
Author: Keshav Verma


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