Bitcoin Whales Are Showing Different Behavior In Exchange Inflows This Time
As an analyst explained in a CryptoQuant Quicktake , the BTC whales’ movements have been different this time compared to the previous cycle.The indicator of interest here is the “exchange inflow,” which tracks the total amount of Bitcoin being transferred to wallets attached to all centralized exchanges. In the context of the current discussion, derivative platforms are specifically of interest.
Generally, extraordinary spikes in the indicator are associated with whale movements, given that only these humongous holders can cause such large shifts.
On the other hand, when the metric has a low value, it suggests that the whales aren’t depositing anything significant to these platforms, a possible sign that they don’t want to take risks on the derivative side.The value of the metric seems to have been relatively low in recent days | Source:The indicator in the above graph also has another condition attached: it only tracks the inflows coming from the whales that had been holding for at least 1 month and at most 3 months.
One explanation may be that the whales are not interested in making any real moves right now. However, a more likely reason may be that spot exchange-traded funds (ETFs) exist now.
The spot ETFs hold Bitcoin on behalf of their customers and let them gain indirect exposure to the cryptocurrency in a way familiar to conventional investors. The ETFs have brought significant demand into the asset and have quickly become an important part of the market. It’s possible that, with this new investment vehicle, the usual cryptocurrency exchanges no longer have the same relevance for the asset. This could be why the pattern that held during the previous BTC cycle has seemingly disappeared from the current one.BTC Price
At the time of writing, Bitcoin is trading at around $66,100, down more than 8% over the past week.Looks like the price of the asset has overall moved sideways recently | Source: