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Breaking News: Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence

Bitcoin Whale Ratio Surges As Leverage Remains High

Keshav Verma
Keshav Verma
2 years ago
3 mins read
Bitcoin Bear

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On-chain data shows the Bitcoin whale ratio has surged up recently, as leverage in the market has remained around an all-time high value.

Both Bitcoin Whale And Leverage Ratios Are Around ATHs Right Now

As pointed out by an analyst in a CryptoQuant post, BTC investors are involved in some high-risk trading in the futures market currently.

The “exchange whale ratio” is an indicator that measures the ratio between the sum of the top ten inflows to exchanges, and the total exchange inflows.

Since the ten largest transfers to exchanges are assumed to be from the whales, this metric tells us about whether whales are active on the market right now or not.

Related Reading: Feed3, Bitcoin, and Chiliz: Top 3 cryptos that can help you make gains even in a bear market

When the value of the ratio is high, it means whales are making a big contribution to the exchange inflows at the moment.

Now, here is a chart that shows the trend in the Bitcoin whale ratio over the last few years:

Bitcoin Exchange Whale Ratio

Looks like the value of the metric has been elevated in recent days | Source: CryptoQuant

As you can see in the above graph, the quant from the post has marked the relevant periods of trend for the Bitcoin exchange whale ratio.

It seems like usually whenever the indicator has hit a high and then subsequently started declining, the price has also taken a large hit.

Related Reading: Bitcoin Struggles To Retain The $20,000 Mark While ENS Protocol Gains

From the chart, it’s apparent that the metric has risen up during recent months, and is now floating around all-time high values.

The data for the “estimated leverage ratio” is also displayed. This indicator tells us the amount of leverage being used by the average trader on the futures market.

The Bitcoin leverage ratio has very sharply surged up recently and is also at a new ATH now, suggesting that investors are taking a lot of risk at the moment.

High leverage in the market has historically resulted in a more volatile BTC price. Under these conditions, if the whale ratio also starts turning down and the same trend as in the past follows now as well, then things could get bearish very fast for the crypto.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.5k, up 2% in the last seven days. Over the past month, the crypto has gained 1% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

The value of the crypto seems to have been trending sideways since the plunge a few days back | Source: BTCUSD on TradingView
Featured image from Peg Lemkuil on Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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