• The Bitcoin exchange whale ratio has recently surged, indicating that a large portion of exchange deposits are coming from whales.
• This could suggest whales are putting high selling pressure on the market, which can be bearish for the asset’s value.
• However, low values imply whale inflow activity isn’t too significant compared to the rest of the market, which can be either neutral or bullish for BTC.
Recently, the Bitcoin exchange whale ratio, which is an indicator that measures the ratio between the sum of the top 10 Bitcoin transfers to exchanges and the total exchange inflows, has been surging. This means that a large portion of exchange deposits are coming from the whales, which are the large holders of Bitcoin. This could suggest they are putting high selling pressure on the market, and thus, could be bearish for the asset’s value.
On the other hand, if the whale ratio has a low value, it implies whale inflow activity isn’t too significant compared to the rest of the market. This can either be neutral or bullish for Bitcoin. To measure the whale ratio, we can look at the 72-hour moving average (MA) which indicates the trend in the ratio over the last few months.
As pointed out by an analyst in a CryptoQuant post, the whale ratio is rising right now, which could be a sign of high selling pressure on the market. This could be problematic for the price of Bitcoin, as it could mean the whales are looking to offload their large holdings in order to benefit from the current market conditions.
However, it is important to note that the whale ratio can also indicate the opposite, that is, low whale activity in the exchanges. This could mean that the whales are holding on to their Bitcoin for longer, possibly in anticipation of a further price increase. This could be seen as bullish for Bitcoin.
In conclusion, the Bitcoin exchange whale ratio is an important indicator to watch as it can give us an insight into the activity of the whales and the potential impact of their actions on the price of Bitcoin. While a high whale ratio could indicate high selling pressure, a low whale ratio could mean the whales are expecting a further price increase.