Bitcoin‘s Big Fish
Bitcoin (BTC) whales, those chaps with more coins than sense 🤑, are back at their old tricks: buying up the digital moolah while the little fish 🐠 are, shall we say, a tad apprehensive.
Data from CryptoQuant, those chaps who know their blockchain business, shows a cooling off on the sell-side from the Binance whales.
Bitcoin whales change their tune
Bitcoin at $80,000, eh? Seems to be a right bargain for these big spenders – or perhaps a terrible time to sell for those who fancy a bit of a flutter on the downside 📉.
Darkfost, a contributor on CryptoQuant’s “Quicktake” blog, revealed that the proportion of the top ten largest inflows to Binance attributed to whales has taken a dip.
> “Monitoring whale behavior has consistently provided valuable insights into potential market movements,” he summarized.
> “Given that Binance handles the highest volumes, analyzing the Bitcoin exchange whale ratio on Binance provides a good insight into broader whale activity.”
The exchange whale ratio, you see, has been on a downward trend since mid-January when BTC/USD hit its latest all-time highs. It’s a bit like those old chaps at the golf club who used to shoot in the 70s but now can barely break 90 😂.
>”Currently, this ratio is declining, implying that Binance’s whales are reducing their selling pressure,” the post continues.
> “Historically, an increasing ratio has been associated with short-term price corrections or consolidation phases, while a decreasing ratio has often preceded bullish trends. If this trend of diminishing selling pressure continues, it could help end the current correction and potentially signal a market rebound.”
As CryptoMoon reported, both whales and larger entities holding at least 10 BTC have begun to accumulate coins this month, albeit at modest rates. It’s like they’re nibbling at a plate of biscuits 🍪, rather than devouring the whole lot.
Prospective BTC buyers take a breather
Overall appetite for BTC exposure nonetheless remains suppressed. It’s like those chaps who go to a buffet, look at the spread and then just end up having a cup of tea 🍵.
In its latest newsletter, “The Week Onchain,” analytics firm Glassnode pointed to lackluster demand at current prices.
It referenced capital flows by short-term holders (STHs) — speculative entities holding coins for up to six months. Within this cohort, buyers holding between one week and one month now have a lower cost basis than those holding for between one and three months.
>”With Bitcoin prices dropping below $95k, this model also confirmed a transition into net capital outflows, as the 1w–1m cost basis fell below the 1m–3m cost basis,” researchers explained.
> “This reversal indicates that macro uncertainty has spooked demand, reducing new inflows and arguably increasing the probability of further sell pressure and a prolonged correction. This transition suggests that new buyers are now hesitant to absorb sell-side pressure, reinforcing the shift from post-ATH euphoria into a more cautious market environment.”
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2025-03-12 12:47