Bitcoin whales have resumed their purchases of BTC, while smaller investors are staying on the sidelines due to a sense of “panic,” as indicated by recent analysis. Data from a blockchain analytics platform highlights a decline in selling pressure from large investors on Binance.
As Bitcoin (BTC) reaches $80,000, it appears appealing to high-volume investors, or at least presents a less compelling option for those looking to exit the market. A contributor to the analytics platform recently noted that the share of the top 10 largest inflows to Binance driven by whales has dropped. They emphasized that tracking whale activity has consistently offered valuable perspective on potential market trends. Given that Binance processes the highest trading volume, examining the whale ratio on the platform offers significant insights into broader behaviors of large holders.
The whale ratio on Binance has indeed shown a consistent downward trend since mid-January, coinciding with BTC/USD setting new all-time highs. The post observed that the current decline in this ratio indicates that whales are easing their selling activities. Historically, a rising whale ratio has been linked to short-term price corrections or periods of consolidation, while a falling ratio often signals an impending bullish trend. If the trend of decreasing selling pressure persists, it may help conclude the ongoing correction and potentially herald a market rebound.
As previously reported, both whales and larger entities holding at least 10 BTC have begun to accumulate more coins this month, albeit at restrained levels. However, overall interest in BTC remains muted at the $80,000 mark.
In a recent analysis, another analytics firm pointed out a lack of enthusiasm for BTC at current pricing. They highlighted the capital flows from short-term holders (STHs)—those who possess coins for up to six months. Within this group, buyers who have held for one week to one month now show a lower cost basis compared to those who have held for one to three months. The research indicated that as Bitcoin prices dipped below $95,000, a shift into net capital outflows was confirmed, as the short-term holders’ cost basis for one week to one month fell beneath that of the one to three-month holders.
This shift suggests that broader macroeconomic uncertainty has dampened demand, resulting in diminished new inflows and potentially heightening the risk of continued selling pressure and an extended correction. This trend demonstrates that new buyers are now reluctant to absorb selling pressure, marking a transition from post-all-time-high enthusiasm to a more cautious market sentiment.
This information is not intended as investment advice or recommendations. Every investment carries risk, and readers should perform their own research when considering their options.