Recent on-chain data shows that Bitcoin whale investors have been strategically adding to their portfolios in recent weeks, even as price remains muted. Nearly 10 addresses were added to the cohort in the last two weeks and the Exchange Whale Ratio was on the lower side, suggesting less outflows from whales.
What is a Whale?
Organizations that track on-chain activity define whales as wallets that store at least 1000 coins at any particular time. Whale movements have become the subject of intensive scrutiny over the years, providing traders and analysts with valuable clues into market sentiment. Because they own a considerable portion of BTC’s circulating supply, these powerful investors contribute significantly to price changes through their transaction activity. An increase in whale ownership typically indicates a long-term bullish trend.
Whales Buying The Dip
BTC’s price has been stagnant in recent weeks, and during such times of inactivity, whale investors strategically enter into accumulation mode. As per data from Santiment, whale transactions hit a 3-week high earlier this week. Looking at the price action, it appeared that whales bought the dip, after short-term holders liquidated their stashes following the gains made in the previous day.
Exchange Whale Ratio Indicator
The Exchange Whale Ratio indicator provided additional evidence that whales were stockpiling for the big game. Exchange Whale Ratio is basically relative size of top 10 inflow transactions to total inflows on an exchange as tracked by CryptoQuant. In other words it measures how frequently whales use exchanges compared to other market participants – when this ratio is low it indicates more accumulation by large holders than usual versus other traders using exchanges normally.
Long Term Goals?
Given this surge in activity combined with low exchange activity by these powerful investors it would seem then they are likely accumulating bitcoins for longer term goals rather than shorter term speculation – which could bode well for bitcoiners hoping for higher prices eventually!