Bitcoin Binance Exchange Whale Ratio Is Declining: What It Means

On-chain data shows the Bitcoin Exchange Whale Ratio for Binance has been going down recently, a sign that may be bullish for BTC’s price.

Bitcoin Binance Exchange Whale Ratio Is Calming Down

As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin whale selling pressure may be decreasing on the cryptocurrency exchange Binance. The indicator of relevance here is the “Exchange Whale Ratio,” which measures the ratio between the top 10 inflows and total inflow for a given centralized exchange.

The ten largest transfers to any platform can be assumed to be coming from the whale entities, so this metric’s value basically tells us about how the deposit activity of the large traders compares against the entire market.

When the value of the Exchange Whale Ratio is high, it means the whales are making up for a significant part of the inflows going to the exchange. As one of the main reasons why investors deposit to these platforms is for selling-related purposes, this kind of trend can imply these humongous investors are interested in distribution.

On the other hand, the indicator being low implies the whales are making up for a relatively healthy portion of the total exchange inflow, which, depending on other factors, can prove to be bullish for the asset’s price.

Now, here is the chart shared by the quant that shows the trend in the Bitcoin Exchange Whale Ratio for Binance over the last couple of years:

As displayed in the above graph, the Bitcoin Exchange Whale Ratio for Binance has been following an overall downward trajectory recently, which suggests whales are slowing down their inflow activity.

Last year, a similar trend was also observed, as the analyst has highlighted in the chart. It would appear that the whales pulling back on their selling activity on the platform allowed the cryptocurrency to escape its consolidation phase back then.

The Exchange Whale Ratio for the exchange could now be to keep an eye on, as a continuation to its decline could potentially help the cryptocurrency shake off its bearish winds this time as well.

In some other news, activity related to the stablecoins has noted a uptick recently, as another analyst has pointed in a Quicktake post.

Both the Active Addresses and Tokens Transferred metrics have seen an increase for all ERC-20 stablecoins recently. Investors often use these tokens for buying into volatile cryptocurrencies like Bitcoin, so an increase in transaction activity related to them can be a bullish sign for the prices of BTC and others.

BTC Price

At the time of writing, Bitcoin is trading around $82,900, down more than 7% over the last week.