Bitcoin Whale Ratio Soars, Could A Crash Be Coming?

Keshav Verma

Last Updated: June 11, 2024 1:56 pm

3 mins read

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The Bitcoin all exchanges whale ratio has soared, which might be an indicator that a crash could be coming soon, based on past patterns.

The All Exchanges Whale Ratio Soars

As pointed out by a CryptoQuant post, the Bitcoin All Exchanges Whale Ratio had a sharp spike on Sunday.

The BTC All Exchanges Whale Ratio is defined as the total amount of coins in top 10 transactions of all exchanges (that is, the transactions with the most BTC sent) divided by the total amount of coins flowing into the exchanges.

Bitcoin All Exchanges Whale Ratio= Sum of Top 10 Exchange Inflow TXs (BTC) ÷ Total Exchange Inflows in BTC

The indicator shows the relative size of the top transactions to the total inflows on all exchanges. Based on which, it becomes possible to tell the ratio of whales that are using the exchanges.

Now, here is how the Bitcoin all exchanges whale ratio chart looks like for the year 2021:

The BTC whale ratio seems to have risen | Source: CryptoQuant

As is clear from the chart, the value of the Bitcoin all exchanges whale ratio seems to have sharply increased recently.

A notable feature of the graph is that the value of the indicator right now, about 0.6, has only been surpassed by three other occasions in the year.

And shortly after those periods where the ratio spiked, a decline in the price of Bitcoin has always been observed.

The reason behind the drop is that whenever the indicator increases in value, it means whales are sending their BTC to exchanges for selling/exchanging purposes. Whales dumping their coins has always driven the price down.

Bitcoin Price

As of the time of publishing, BTC’s price is going around 33.5k, down almost 0.8% in the last 7 days. Compared to one month ago, its trading value is about 6% lower.

Here is a chart noting the trend in Bitcoin’s price over the last 6 months:

BTC's price seems to be on a downtrend | Source: BTCUSD on TradingView

The price of Bitcoin continues to be range bound as the crypto fails to escape the $35k resistance line. The volatility has dropped to the lowest of the year as the coin’s price stagnates.

Based on the behavior of the indicator this past year, the current spike in the BTC All Exchanges Whale Ratio might suggest that a drop in the price could be coming soon.

It’s unclear how much the price would drop if the pattern indeed holds, and whether the market will enter a bear market afterwards. It’s also possible that a small dip could be there that’s followed by a long-term bull market.

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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