Data provided by CryptoQuant company says that the all exchanges whale ratio has seen the third major surge this year and this may be negative for Bitcoin
According to the CryptoQuant chart shared by the Chinese crypto journalist Colin Wu, the Bitcoin whale ratio for all digital exchanges has surged and this may signify a Bitcoin price decline soon.
CryptoQuant is a popular analytics data provider often cited on Crypto Twitter when talking about Bitcoin and other cryptocurrencies, along with Glassnode.
Whale ratio hits a 0.593 high, here’s why it could be bearish for BTC
Colin Wu stated that only three times before in 2021 the whale ratio of exchanges has been higher than now. However, each time, as the CryptoQuant chart shows, the Bitcoin price dropped within days after these rises of the whale ratio.
This ratio measures the size of biggest ten inflows and outflows of Bitcoin to and from crypto exchanges.
When the value of this index increases, it signifies a rise in the selling pressure from largest cryptocurrency owners known as whales.
By today, the ratio has spiked to the 0.5934841 level.
On July 11, the whale ratio of all exchanges soared to 0.5934841. Only three times this year have been higher than this time, and the price has declined to a certain extent in the following days. pic.twitter.com/ArFLsTRSzZ
— Wu Blockchain (@WuBlockchain) July 12, 2021
However, a crypto trader @Bit_Pascal pointed out to Wu that after any of the drops that followed the spikes of the whale ratio, Bitcoin price demonstrated a sharp increase. So, he expects BTC to start growing this time after a fall as well.
Regular BTC inflows see a major drop
As reported by the Santiment data collector earlier, inflows of Bitcoin to centralized crypto exchanges have seen a sharp drop to the 50-day low.
Therefore, the supply of the largest cryptocurrency by market cap held by trading platforms and apps has also plunged significantly.
At the same time, Bitcoin mining companies have started accumulating BTC after a month of selling it. As well as that, the Bitcoin hashrate has begun to recover from its recent drop to a historic low last seen back in 2019.
Largest whales are holding 3.4 percent of the BTC supply
Over the weekend, U.Today reported that at the moment approximately 3.4 percent share of the total BTC supply in circulation is held by just four wallets that hold from 100,000 BTC to 1,000,000 BTC.
Wallets owned by smaller whales, that contain from 10,000 – 100,000 Bitcoins, hold 10.91 percent of the circulating Bitcoin supply.