Data from on-chain suggests that Bitcoin whales are showing a different behaviour in terms of exchange flows compared to the previous cycle. This is why.
Bitcoin whales are showing a different behavior in exchange flows this time
An analyst explained this in a CryptoQuant Quicktake postThe BTC whales have moved differently this cycle compared with the last.
This is the indicator of interest.exchange inflow“, which keeps track of the amount of Bitcoin transferred from all central exchange wallets. Within the context of this discussion, the derivative platforms of particular interest.
This metric is high when investors deposit large sums on the exchange. A high value for this metric indicates a demand for services provided by these exchanges.
The indicator will generally show unusually high spikes. whale These holders alone can produce such huge movements.
If the value is very low, then it could be an indication that these whales do not want to accept any risks in the derivative market.
The chart below shows data on the Bitcoin trade inflows for derivative exchanges.
Recent days have seen a relatively low value for the metric | Source: CryptoQuant
This indicator also comes with a condition: It only records the inflows from whales who have been in a holding pattern for at least one month, and up to three months.
They are the first whales on the market. However, they’re not so new as to have just bought. (Those with a hold time less than one month). By limiting the time period, we exclude the traders who are known to make large amounts of trades in short timeframes.
The chart shows that the analysts has shown the large amount of money the whales have invested in derivatives around the time when the cryptocurrency market is most volatile.
The cryptocurrency, however, has not seen such a large increase in the amount of money flowing into it this year, despite the fact that the asset is now above its previous high.
The whales may not be interested in moving at all right now. A more probable reason is that the whales are not interested in making any real moves right now. spot exchange-traded funds (ETFs) Existence now.
These spot ETFs are held by their customers on behalf and allow them to get indirect exposure in the crypto currency.
ETFs are a major part of the cryptocurrency market and they have become incredibly popular. The traditional exchanges for cryptocurrency may no longer hold the same importance with the new investment vehicle.
It is possible that the same pattern which was observed during the last BTC cycle, has now disappeared.
BTC Price
Bitcoin’s price is currently around $66,100. This represents a drop of more than 8% from the previous week.
The price of an asset is moving sideways in recent months | Source: BTCUSD on TradingView
The featured image is from Bart, Unsplash.com. Charts are from TradingView.com.
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