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Bitcoin Whales Remain On Standby, But For How Long?

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On-chain data shows the Bitcoin exchange whale ratio has remained at relatively low levels recently, implying that the whales haven’t been active.

Bitcoin Exchange Whale Ratio Hasn’t Observed Any Uplift Recently

As pointed out by an analyst in a CryptoQuant post, whales have not intervened in the latest decline in BTC so far. The indicator of interest here is the “exchange whale ratio,” which measures the ratio between the sum of the ten largest transactions to exchanges, and the total exchange deposits in the market.

Since the top 10 transfers to these platforms are generally coming from the whales, the ratio’s value can tell us about how the deposit activity of these humongous investors currently compares with that of the entire market.

When the value of this metric is high, it means that the whales are making up a high percentage of the total exchange inflows in the sector right now. As one of the main reasons why investors deposit to exchanges is for selling-related purposes, such a trend can imply these large holders are dumping currently.

On the other hand, low values of the indicator imply this cohort is only making up for a healthy portion of the inflows at the moment. Depending on other factors, this trend can be either neutral or bullish for the value of the asset.

Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio, for spot exchanges, and for derivative exchanges, over the past few months:

Looks like both these metrics haven't observed any significant increase in recent days | Source: CryptoQuant

As shown in the above graph, the exchange whale ratio for both types of platforms has mostly moved sideways around relatively low values recently. This suggests that these investors haven’t been depositing much to either derivative or spot exchanges.

At the current value of the metric, whales are only making u

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Author: Hououin Kyouma

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