Crypto Sonar: The Sign That Whales Are Accumulating Bitcoin

Keshav Verma

Last Updated: June 11, 2024 1:56 pm

3 mins read

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Whales are accumulating Bitcoin again, as per the data released by CryptoQuant that shows deeply negative BTC netflow.

Yesterday, BTC dropped below $30k for the first time since the start of the year, but it quickly rebounded to around $32k.

Signs That Show Rising Bitcoin Accumulation

The “sign” to focus on here is BTC netflow to/from exchanges. To understand what it shows, first we will have to take a look at two specific terms, exchange inflow and outflow.

Exchange inflow is the number of coins deposited into exchange wallets. If it increases, it means that more people are sending their Bitcoin to exchanges, indicating a dump.

On the other hand, exchange outflow is the number of coins withdrawn from exchange wallets. If this value goes up, more people are sending their BTC to individual wallets, meaning they are buying more.

As mentioned before, the relevant term here is exchange netflow, which is just the difference between the inflow and the outflow.

Exchange Netflow = Exchange inflow – Exchange Outflow

Now as per the data by CryptoQuant, here is how the Bitcoin exchange netflow graph looks like for the past 7 days:

BTC exchange netflow shows deep red | Source: CryptoQuant

As is clear from the chart, the Bitcoin netflow is showing deep negative behavior.

A negative netflow behavior means that more BTC is moving out of exchanges than in. For example, from the graph, 5k BTC moved out to individual wallets yesterday alone.

In the past week, the most Bitcoin that moved out was on between the 15th and the 16th, when in total 39k BTC moved out of exchanges.

The interesting thing is, such a large movement of coins must mean some whales have started accumulating.

Bitcoin Price

BTC has rebounded from the crash to below $30k, and seems to on a rise. In the last 24 hours, it’s up almost 18%. Though, when looking over the past 7 days, the cryptocurrency is still down 12%.

At the time of writing, the coin is trading around $34k. Here is a chart that shows the variation in BTC’s value over the past 4 months:

BTC gains a momentarily upwards trend after the latest crash | Source: BTCUSD on TradingView

It’s hard to say right now where the price will head next as it has been a chaotic few weeks. The current upwards trend is probably only temporary, however.

Some experts believe the market is going to go further down, but long-term it will go up.

One thing is for certain, though, with whales starting to accumulate more Bitcoin, there is surely some bullish sentiment around the 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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