Bitcoin Faces Downward Pressure as Whale Activity Surges 60%

The price of Bitcoin has been relatively stable over the past week, briefly reaching the $87,000 level on Thursday, March 20. However, recent on-chain data suggests that the cryptocurrency market may face downward pressure in the coming weeks. This is due to an increase in the activity of Bitcoin whales on centralized exchanges, which could impact the price dynamics of Bitcoin.

An analyst using the pseudonym EgyHash on the CryptoQuant platform highlighted that the "Exchange Whale Ratio" metric, which measures the ratio between the sum of the top 10 largest transfers into centralized exchanges and the total exchange inflow, has been rising. This metric provides insights into the activity of whale investors relative to other market participants. A high value indicates that the 10 largest exchange inflows are significantly larger than the rest of the market's inflows, while a low value suggests that whales are contributing a relatively smaller portion of funds flowing into exchanges.

According to the analyst, the Bitcoin Exchange Whale Ratio has reached levels not seen since last year, climbing to over 0.6 in the past week. This rise began in December 2024 and has continued to increase, reaching a new high for the first time since September 2024. Typically, inflows into centralized exchanges can negatively impact the value of Bitcoin, as these platforms facilitate selling. The steady rise in the Exchange Whale Ratio could be a bearish signal, indicating that large investors might be exiting the market.

Whales sending their assets to exchanges can trigger a sell-off cascade, as other investors often monitor their trades due to their significant market influence. This selling pressure could threaten Bitcoin’s future trajectory. As of the latest update, the price of Bitcoin is just above the $84,000 mark, with no significant movement in the past 24 hours. The rising Exchange Whale Ratio suggests that the market may face downward pressure, potentially impacting Bitcoin's price in the near future.