The Bitcoin exchange whale ratio is increasing in recent times, which may have implications for crypto’s price.
The Bitcoin Exchange Whale Ratio has been rising in recent weeks
A CryptoQuant analyst points out that whales continue to sell large amounts of BTC, based on the BTC Whale Ratio value.
The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top ten Bitcoin transactions to exchanges and the total exchange inflows.
This metric simply tells you how much of total inflows are contributed to exchanges by whales. The ten biggest transactions are presumed to have been from whales.
The ratio that is higher than the average value indicates that whales are absorbing a significant amount of current flows. This trend could indicate that these large holders are being dumping crypto.
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However, low values can indicate whales selling at a healthy price right now. This could be either neutral or bullish for BTC’s price.
Below is a chart that illustrates the trends in Bitcoin exchange whale ratios over the last few years.
It seems like the indicator's value has increased recently. Source: CryptoQuant| Source: CryptoQuant
The graph above shows that the ratio of Bitcoin to whale has increased in recent weeks.
It seems that the increase began around the time the coin fell below $20k. After the crash, a significant portion of the market fell underwater. The subsequent increase in whale-dumping could be a sign that they’re entering a phase of capitulation.
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The quant notes that while this heavy selling from the whales can be bearish for the crypto’s price in the short term, it could also be a sign that the bottom is coming near.
BTC price
At the time of writing, Bitcoin’s price floats around $19.4k, down 3% in the last seven days. In the past month, crypto lost 27%.
Below is a chart showing the change in coin price over the past five days.
Crypto seems to be losing value over the past few days. Source: TradingView, BTCUSD.| Source: BTCUSD on TradingView
Bitcoin appeared to have been holding at least $20k just a week back, however the price has fallen steadily in the last few days.
Featured image from Karl-Heinz Müller on Unsplash.com, charts from TradingView.com, CryptoQuant.com