On-chain data shows the Bitcoin whale exchange inflow activity has been increasing recently, a sign that may not be positive for the price.
Bitcoin Exchange Whale Ratio Has Been Going Up Recently
As an analyst in a CryptoQuant Quicktake post pointed out, the exchange whale ratio has recently observed an uptrend. The “exchange whale ratio” refers to an indicator that keeps track of the ratio between the sum of the top 10 transfers to exchanges and the total exchange inflow.
The ten largest deposits to exchanges generally come from whale entities, so this ratio’s value can tell us about how the inflow activity of these humongous investors compares against that of the entire market.
When this metric is high, the whales comprise a significant part of the total exchange inflows. Since one of the main reasons why these holders might transfer their coins to these platforms is for selling purposes, this kind of trend can be a sign that the whales are potentially dumping.
Naturally, such selling can be bearish for the asset’s price. On the other hand, low values imply these large investors are only making up for a healthy portion of the exchange inflows, which could lead towards a neutral or bullish outcome for the coin.
Now, here is a chart that shows the trend in the 30-day simple moving average (SMA) Bitcoin exchange whale ratio over the past few years:
Looks like the 30-day SMA value of the metric has been heading up in recent days | Source: CryptoQuant
As is visible in the above graph, the quant has highlighted the pattern that the Bitcoin exchange whale ratio has followed during this period. In the leadup to the 2021 bull run, the indicator appeared to have d
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Author: Keshav Verma
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