Whales exit market, bitcoin (BTC) enters turmoil

Whales exit market, bitcoin (BTC) enters turmoil

Are whales deserting the bitcoin (BTC) market? This is what analysts fear in view of the latest data. They demonstrate that the ratio of whales on BTC exchanges is gradually increasing. Experts infer that these huge holders could start fleeing the market.

The whales are busy

Whales are the source of nearly 90% of incoming flows from exchanges of bitcoin at present. As one analyst pointed out in a CryptoQuant post, they may be accelerating dumping, a sign that could be bearish for the price of BTC.

the « ratio of exchange whales is an indicator that measures the ratio between the sum of the ten largest transactions of BTC to exchanges and total exchange inflows. Since whales generally hold the 10 biggest transactions to trading platforms, it is possible to learn more about the relative size of incoming flows of whales compared to the rest of the market.

When the value of this metric is high (i.e. greater than 85%), it means that whales currently represent a very large part of all exchange inflows. According to analysts, this is precisely what is happening now.

Exchange flow ofbitcoin. Source: NewsBTC.

A drop in bitcoin that could continue

The previous chart demonstrates that the Bitcoin exchange’s whale ratio has skyrocketed and is now approaching the 90% mark. This suggests that the whales may be starting to intensify their dumping at this time. Earlier in the month, the ratio passed the 90% point and the price of the coin dropped below $26,000.

The analysts are formal: if the trend continues like this and nothing is done, cryptocurrency will see another drop even more remarkable than the one we have now. As of this writing, the price of bitcoin is hovering around $29.7,000, down 6% in the past seven days. Over the past month, the cryptocurrency has lost 25% of its value.

Obviously, the end of the tunnel is not near. It is not tomorrow that we will see that the cryptocurrency market, in particular bitcoin (BTC) will regain color and evolve in an upward trend. Indeed, experts believe that the whales are leaving the market, which suggests the worst.

Source: NewsBTC

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