According to on-chain data, Bitcoin whale inflows into exchanges have remained at their highest levels ever recently. This suggests that the current recovery of $22k might not last very long.
Bitcoin Top 10 Exchange Inflows have risen in recent days
An analyst from CryptoQuant pointed this out postCurrent whale deposits to cryptocurrency exchanges have the highest value ever recorded in crypto history.
The “all exchanges inflow” is an indicator that measures the total amount of Bitcoin currently entering into wallets of all centralized exchanges.
The sum of the top 10 inflows represents the total amount of coins that have been deposited by BTC Whales.
This metric can be high if it is very valuable. It means that whales are currently depositing large amounts Bitcoin. Because investors typically transfer their coins to exchanges for selling, this trend can indicate that there is dumping by whales. It could also be bearish on the cryptocurrency’s value.
A low value of this metric means that whales are depositing large amounts to exchanges. This trend can either be bullish or neutral for BTC depending on whether there is any buying currently.
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Below is a chart that illustrates the trends in BTC’s top 10 inflows over the last few decades (21-day moving median)
The indicator seems to have seen an increase in value over the past few weeks. Source:| Source: CryptoQuant
As you can see, the 21-day MA Bitcoin top-ten inflow is at an all time high.
This means that whales are depositing at a rate not seen in the history crypto. These whales could be selling their coins and this could lead to a bearish outcome for BTC. This would make the recent rally to $22k short-lived.
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In the same chart, the quant also displays data about the BTC volume. It seems like the volume of the coin hasn’t been too high recently. This could indicate that the recent rally was driven by whales, and not organic activity. It also suggests that the increase may have been short-lived.
At the time of writing, Bitcoin’s price floats around $22k, up 11% in the past week. Below is a chart showing the change in crypto’s value over the past five days.
The coin's value seems to have increased in recent days. Source:| Source: BTCUSD on TradingView
Featured image from Rémi Boudousquié on Unsplash.com, charts from TradingView.com, CryptoQuant.com