Bitcoin Whale Selling Pressure Continues As BTC Dips Under $20k

Keshav Verma

Last Updated: June 11, 2024 2:26 pm

3 mins read

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On-chain data shows Bitcoin whales have continued to put selling pressure on the market as the price of the crypto now drops below $20k.

Bitcoin Exchange Whale Ratio Has Spiked Up To High Values

As pointed out by a post from CryptoQuant, the exchange inflows that followed the US CPI release lead to the price crashing 10% in only a couple of hours.

The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top 10 Bitcoin transactions to exchanges, to the total exchange inflows.

Since the ten largest transfers to exchanges are usually from the whales, this metric’s value tells us how much of the total inflows are coming from these humungous holders.

When the value of the ratio is high, it means whales are making up for a large part of the total transactions to exchanges. Such a trend can be a sign of dumping from this cohort.

Now, here is a chart that shows the trend in the Bitcoin exchange whale ratio (EMA 7) over the year 2022 so far:

The value of the metric seems to have been quite high in recent days | Source: CryptoQuant

As you can see in the above graph, the 7-day exponential moving average of the Bitcoin whale ratio has been elevated recently. This shows that a big part of the recent activity on exchanges has been coming from these holders.

Another indicator, the Spent Output Value Bands, tells us what the individual contributions to the inflows are from the different holder groups in the market. Investors are put into these cohorts based on the amount of BTC they are holding in their wallets.

The below chart shows the trend in this metric specifically for the 1k to 10k BTC and 10k+ BTC holder groups.

Looks like the two cohorts have been active in recent days | Source: CryptoQuant

As the graph shows, both the whales holding between 1k to 10k BTC and those with 10k or more BTC have actively contributed to the exchanges recently.

A few large spikes from them came right before the recent plummet in the Bitcoin price that took its value down to $20k.

The quant in the post notes that later today’s values of the exchange whale ratio can be important in judging how severe its moving average is going to be.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.7k, down 6% in the past week.

The value of the crypto has dipped below $20k now | Source: BTCUSD on TradingView

Featured image from Andrew Bain on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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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