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Whale Sightings Become Scarce, Removing Downward Pressure on Bitcoin: Analyst
Big bitcoin balance holders, or "whales," are moving less crypto onto exchanges, signaling some reduction of sell-side pressure, according to CryptoQuant.
Updated Sep 14, 2021, 10:48 a.m. Published Dec 28, 2020, 4:16 p.m.
A lack of whales with aplenty to sell may be clearing the way for the price of the leading cryptocurrency to rise further, according to CryptoQuant Chief Executive Ki Young Ju.
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- Fewer "whales" – bitcoin holders possessing large balances – are depositing onto exchanges the past few days, according to CryptoQuant, a crypto market data aggregator.
- CryptoQuant's "Exchange Whale Ratio," which is calculated by dividing top 10 bitcoin inflow transactions in an hour by total BTC exchange inflows, has dropped below 85%.
- From Dec. 8-22, the ratio stayed above 85% as whales were likely profit-taking during the bull run, which reached a price zenith of $28,352 Sunday according to CoinDesk 20 data.
- Some market exhaustion is expected, according to Young Ju, but he expects institutions to pick up some of the slack.
- "I think this bull run will continue as institutional investors keep buying and Exchange Whale Ratio keeps below 85%," Young Ju noted on Twitter.
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When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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