The ratio of large players on cryptocurrency exchanges has reached its highest level since 2020, which may signal a shift in trends in the Bitcoin market.
This is reported by Business • Media
Record Levels of Bitcoin Whale Activity
According to the analytical platform CryptoQuant, the share of Bitcoin transactions conducted by so-called “whales” — large players making the biggest transfers — has risen to its highest level in the last six years. Meanwhile, the activity of retail investors has decreased to minimal levels during the same period.
A key indicator for assessing this trend is the Exchange Whale Ratio — a metric that reflects the share of Bitcoins on exchanges attributed to the ten largest transactions. According to updated data, this index is currently recording unprecedented values, indicating increased accumulation of cryptocurrency by major market participants.
The Impact of Market Players on Bitcoin Price Trends
Analysts note that large investors typically behave contrary to the majority of small traders: they buy assets during price declines and exit positions during prolonged increases. In contrast, retail investors tend to buy Bitcoin at market peaks and sell under pressure from declining prices.
“Analysts believe that an increase in the Exchange Whale Ratio often coincides with the formation of a local market bottom. Previous peaks in the indicator have also preceded the start of an upward trend,” the report states.
Experts suggest that when large players begin to accumulate Bitcoin en masse while retail investor activity sharply declines, it may indicate the proximity of a market bottom for Bitcoin’s price.
Ki Young Ju, CEO of CryptoQuant, emphasized that most industry analysts currently exhibit a high level of optimism regarding Bitcoin’s future.
Additionally, according to data from Santiment, the volumes of Bitcoin on exchanges are the lowest since November 2017. This indicates significant changes in the structure of the cryptocurrency market over the past eight years, as well as a substantial redistribution of assets.
Previously, CryptoQuant reported that the share of Bitcoins held at a loss is approaching 45%, which may also indicate the end of the market’s downward phase.