The past week has seen Bitcoin’s price largely stagnant, with a brief surge to the $87,000 mark on March 20. However, current on-chain data indicates that this erratic market scenario may persist, hinting at potential downward fluctuations in Bitcoin’s value in the upcoming weeks.
What does an increased Exchange Whale Ratio imply for Bitcoin’s price? An anonymous analyst, EgyHash, recently posted a Quicktake on the CryptoQuant platform, highlighting the growing activity of Bitcoin whales on centralized exchanges in recent weeks. EgyHash also provided insights into how this emerging trend may affect Bitcoin’s pricing.
The analysis is primarily based on the “Exchange Whale Ratio” metric. This ratio calculates the total of the top 10 largest transfers to centralized exchanges against the overall exchange inflow. For clarification, the top 10 largest inflows are contributed by whale addresses – these are entities with substantial crypto holdings, thus having a significant influence on the market.
This Exchange Whale Ratio is a useful indicator of the activity of this investor group compared to other market participants. A high ratio implies that the top 10 largest inflows are collectively larger than the rest of the funds flowing into centralized exchanges. Conversely, a low ratio indicates that whales contribute a relatively balanced portion of the total inflow.
According to EgyHash’s analysis, the Bitcoin Exchange Whale Ratio has reached its highest level since last year. The graph below demonstrates a continuous rise in this metric since December 2024, peaking at over 0.6 in the past week – a level not reached since September 2024.
Oftentimes, inflows into centralized exchanges can result in a depreciation of the primary cryptocurrency’s value, as these platforms facilitate selling. EgyHash points out that the consistent surge in the Exchange Whale Ratio could be a bearish sign for Bitcoin’s price, indicating that major investors might be exiting the market. Furthermore, when whales transfer their assets to exchanges, it could trigger a domino effect of selling, as other investor groups tend to follow their trading trends due to their significant market influence. The resultant selling pressure from the elevated Exchange Whale Ratio could potentially alter Bitcoin’s future course.
As of this article’s publication, Bitcoin’s price is hovering slightly above $84,000, showing no significant changes in the last day.
Featured image created by DALL-E, chart from TradingView
