Whales are depositing Bitcoin to exchanges despite BTC reserves hitting lows

    Bitcoin price volatility continues as data reveals exchange activity is anything but flat this week, new data shows. Bitcoin whales move large amounts of coins to exchanges in tandem with large outflows, while top 10 deposits make up 90% of exchange inflows.

    According to on-chain analytics firm CryptoQuant, the exchange whale ratio indicator large shows that transactions have accounted for over 90% of recent exchange deposits, Cointelegraph said. In a marked change from previous behavior, whales have become much more active prospective sellers on exchanges over the past week.

    The exchange whale ratio, which measures how large the top 10 deposits to exchanges are relative to all deposits, is sounding the alarm.

    “Whales are depositing BTC to exchanges,” noted Ki Young Ju, CryptoQuant CEO. “$BTC Exchange Whale Ratio (72h MA) reached 91%. This indicates the top 10 deposits take 91% of the deposit volume across all exchanges in the hourly timeframe.”

    (Source: Ki Young Ju/Twitter )

    As Cointelegraph reported earlier, large wallets have been buying throughout the recent downturn, while on Tuesday, bid levels among whales increased on exchange Bitfinex from $50,000 to about $54,000.

    In addition, responses to Ki noted that outflows from exchanges en masse also continue, with reserves still at their lowest since mid-2018.

    (Source: CryptoQuant )

    At the same time, Bitcoin price spikes keep coming and going. On Tuesday, for example, BTC saw volatile peaks that would correlate with sudden large-volume actions on exchanges. The phenomenon has played out several times over the past week, each time seeing a sudden burst in BTC price action that then dissipates at major resistance levels.

    (Source: TradingView )

    According to analysts, $60,000 nonetheless needs to return and hold as support once more to trigger a genuine change in the current downtrend.

    Source: https://cointelegraph.com/news/bitcoin-exchanges-see-large-deposits-despite-btc-reserves-hitting-3-year-lows

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