On-chain data shows that bitcoin whales have continued to exert selling pressure in the market as the cryptocurrency has now fallen below $20,000.
Bitcoin exchange whale ratio skyrocketed
As indicated by post from CryptoQuantThe exchange flows that followed the release of the US CPI caused the price to crash by 10% in just two hours.
The “whale exchange ratio” is an indicator that measures the ratio between the sum of the 10 largest bitcoin transactions to exchanges, to the total exchange inflows.
Since the top ten transfers to stock exchanges are usually from whales, the value of this metric tells us how much total inflows are coming from these huge whales.
When the value of the ratio is high, it means that the whales compensate for a large part of the total transactions of the exchanges. Such a tendency can be a sign of dumping from this group.
Now, here is a chart showing the trend in the Bitcoin exchange whale (EMA 7) ratio through 2022 so far:
The value of the metric seems to have been quite high in recent days | Source: CryptoQuant
As you can see in the chart above, the 7-day exponential moving average of the bitcoin whale ratio has been raised recently. This indicates that a large part of the recent activity in the stock exchanges has been coming from these owners.
Another indicator, the ranges of value of output consumed, tells us about the individual contributions to the inflows of different owner groups in the market. Investors are placed in these groups based on how much BTC they hold in their wallets.
The chart below shows the trend in this metric specifically for the combinations of 1k to 10k BTC and 10k + BTC holders.
Looks like the two cohorts have been active in recent days | Source: CryptoQuant
As the graph shows, both whales holding 1 to 10 thousand bitcoins and those holding 10 thousand bitcoins or more have actively contributed to the exchanges recently.
Some of the big spikes in it happened before the recent sharp drop in the price of Bitcoin that brought its value down to $20,000.
The quantity presented in the publication indicates that subsequent values of the whale’s exchange ratio can be important in judging the severity of their moving average.
At the time of writing, Bitcoin price is hovering around $19.7K, down 6% in the past week.
The value of the crypto has dipped below $20k now | Source: BTCUSD on TradingView
Featured image from Andrew Bain on Unsplash.com, charts from TradingView.com, CryptoQuant.com