The tariff news cycle has unleashed a wave of FUD on the Bitcoin market. Here’s how the whales on the largest exchange have been reacting to it.
Bitcoin Exchange Inflows Have Been Dropping On Binance Recently
In a recent CryptoQuant Quicktake post, an analyst has discussed how the Bitcoin whales on Binance have been behaving in response to the current market uncertainties. One of the primary indicators shared is the Exchange Whale Ratio, which measures the ratio between the sum of the top 10 deposits and the total exchange inflow for any given platform.
The ten largest transfers to an exchange typically correspond to the activity of the whales. Therefore, the Exchange Whale Ratio serves as a valuable measure of how whale inflow activity compares to the overall flow on the platform.
A chart illustrates that the 365-day exponential moving average (EMA) of the Bitcoin Exchange Whale Ratio for Binance has been steadily rising throughout this current cycle. This indicates that whales have been contributing an increasingly larger portion of the deposits to the exchange.
Generally, investors deposit their coins to exchanges when they intend to sell. Thus, a high Exchange Whale Ratio may suggest that whales are contributing significantly to selling activity on the platform. The recent rise in the 365-day EMA of the Binance Exchange Whale Ratio reinforces the notion that the larger whales on this leading cryptocurrency exchange are continuing to exert selling pressure.
However, the short-term view (30-day EMA) indicates that whales have begun to lose their inflow dominance. While this could merely be a temporary deviation, it may serve as an early indication of a trend shift that could potentially yield a bullish effect for Bitcoin.
It is essential to note that the Exchange Whale Ratio measures only the proportion of total inflows from whales. Another metric that reveals the magnitude of whale exchange inflows presents an even clearer picture:
The graph indicates that the 30-day sum of the Binance Whale to Exchange Flow was around $8.5 billion at last year’s peak, yet this figure has now reduced to approximately $4.9 billion.
This notable decline suggests that whale deposit activity has significantly diminished in recent months. This trend is particularly noteworthy given the prevailing market anxiety fueled by tariff-related news.
“In conclusion, during this complicated period, it appears that Binance whales are not panicking,” notes the analyst.
BTC Price
Following a recovery surge of over 7% in the past week, Bitcoin has managed to rise back above the $85,000 level.
