Data Shows Whales Are Dumping, But Bitcoin Holds Above $60k

Keshav Verma

1 year ago

3 mins read

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On-chain data shows Bitcoin whales are dumping as they make up almost 90% of the transactions to exchanges, but BTC holds support above $60k.

Bitcoin Exchange Whale Ratio Says Nearly 90% Of Transactions Are From Whales

As pointed out by a CryptoQuant post, BTC has continued to hold support above $60k despite on-chain data showing whales are dumping their coins.

The indicator of relevance here is the “exchange whale ratio.” This metric measures the ratio between the top ten inflow transactions to exchanges and the total volume of Bitcoin moving to exchanges.

With this ratio, the relative size between whale transactions and the total exchange transactions becomes apparent. If the value of the indicator is higher than 85%, it may suggest that whales have started to dump their coins.

Now, here is a chart that shows the trend in the value of the Bitcoin metric over the last couple of months:

Whale ratio has gone up recently | Source: CryptoQuant

As the above graph shows, the indicator has shown an uptrend recently, and now whale transactions make up for nearly 90% of the inflow volume to exchanges.

Such high values suggest there is whale dumping going on in the market. However, despite this trend, BTC has still maintained support above $60k.

There is also another indicator’s curve in the above chart. It’s the “exchange reserve” metric that shows the total amount of BTC currently present in wallets of all exchanges.

Looks like the trend with this indicator during this period has been that it’s going down. This means investors have been pulling their coins off exchanges, and so the supply for selling is being reduced.

This has been creating a supply shock in the Bitcoin market, and it may be this trend that’s making up for whale dumping and helping the coin keep above $60k.

BTC Price

At the time of writing, Bitcoin’s price floats around $61.5k, up 1% in the last seven days. Over the past month, the crypto has gained 16% in value.

The below chart shows the trend in the price of the coin over the last five days.

BTC's price shows some sideways trend over the last few days | Source: BTCUSD on TradingView

Bitcoin has slowed down some in the last couple of weeks as the price of the crypto has been mostly consolidating between the $64k and $60k range. It’s unclear when the trend might break or which direction the crypto might move in once it does, but for now the market has held up support despite the dumping from whales.

Featured image from 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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