Bitcoin Exchange Whale Ratio Hits New High Since 2022 — Impact On Price?

Opeyemi Sule

8 months ago

3 mins read

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Based on price action data, the last two weeks in October are the most bullish period in the Bitcoin price history. However, why that hasn’t been the story for the premier cryptocurrency over the past two weeks seems to be the question on every investor’s mind.

The price of BTC has failed to capitalize on its recent bullish momentum, falling to as low as $65,000 at some point in the past week. Interestingly, the latest on-chain observation suggests that this period of sluggishness might not be over yet for the market leader.

Is The Rising Exchange Whale Ratio Bullish Or Bearish?

In a recent Quicktake post on the CryptoQuant platform, an on-chain analyst pointed out that the Bitcoin “Exchange Whale Ratio” has seen a notable surge in recent weeks. The “Exchange Whale Ratio” metric measures the ratio between the sum of the top 10 largest transfers into centralized exchanges and the total exchange inflow.

For clarity, it is assumed that the 10 largest inflows into exchanges are executed by whales, which are entities that wield significant influence on the market due to their substantial crypto holdings. The Exchange Whale Ratio basically assesses the level of activity of this cohort of investors compared to the rest of the market.

A high Exchange Whale Ratio indicates that the top 10 largest exchange inflows dwarves the incoming transfers from the rest of the market. On the other hand, when the value of this metric is low, it suggests that the whales only make up a relatively healthy part of funds flowing into centralized exchanges.

According to data from CryptoQuant, the seven-day moving average of Bitcoin’s Exchange Whale Ratio recently reached its highest value since November 2022.

The Quicktake analyst pointed out that the spike in this metric could be bearish for the value of the flagship cryptocurrency, as it implies that whales might be putting a significant amount of selling pressure on the market.

Inflows into centralized exchanges typically have a bearish impact on the Bitcoin price, as selling is one of the services offered by these platforms. Moreover, whales moving their funds to trading platforms can set off a sell-off cascade, as other investors often watch their moves due to their market influence.

Bitcoin Price At A Glance

As of this writing, the price of Bitcoin stands around $66,700, reflecting an almost 2% decline in the past 24 hours. This single-day performance underscores how sluggish the premier cryptocurrency has been in recent days. According to CoinGecko data, the price of BTC is down by over 3% in the past week.

Featured image created by Dall.E, chart from TradingView

Opeyemi Sule

Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part - in fact, far from it.

Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.

Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books - ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.

Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.

Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time - he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon - cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment - spreading the crypto gospel to the rest of the world.

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