Will the recovery to $22k be lost with Bitcoin Whale Exchange inflows?
The influx of bitcoin whales on the exchange has recently hit an all-time high, and Chain data show that the recent buildup above $ 22,000 may not last long. As one analyst noted in a CryptoQuant publication, current whale deposits for exchanges are the highest in the history of cryptocurrency.
An indicator called “All Exchange Inflow” counts the total amount of Bitcoins that are now being deposited into the wallets of all centralized exchanges. The amount of the first 10 credits, in particular, reveals how many coins the BTC whales have deposited overall. When this indicator has a more excellent value, it suggests that whales are currently depositing significant quantities of Bitcoin.
Since investors often sell their holdings on exchanges, a pattern like this might portend a whale exodus and boost the currency’s value. On the other hand, a lower value of this indicator shows that the whales are now making wise investments in the exchanges. Depending on whether or not the market is purchasing, this trend may be either bullish or neutral for Bitcoin.
This shows that whales are now depositing on exchanges at a rate that has never before been seen in the history of cryptocurrencies. If these whales were to sell their coins, the impact on Bitcoin would be unbearable, meaning the recent buildup to $ 22k won’t last long. Quant also showed Bitcoin volume data on the same chart. The volume of coins has not been significant lately.
This may indicate that the recent increase may be caused by some whales rather than organic activity, suggesting that the increase may not be long-lasting. At the time of writing, Bitcoin has risen 11% over the past week and hovers around $ 22,000. The chart below shows the valuable trend of cryptocurrency over the last five days.