Bitcoin Whale Presence On Derivatives Still High, More Volatility Ahead?
June 24 2022 - 3:00PM
NEWSBTC
On-chain data shows Bitcoin whales are transferring large amounts
to derivatives exchanges right now, a signal that more volatility
could be ahead for the crypto. Bitcoin All Exchanges To Derivatives
Flow Continues To Show High Value As explained by an analyst in a
CryptoQuant post, BTC whale activity on derivatives exchanges still
seems to be high. The relevant indicator here is the “all exchanges
to derivatives exchanges flow,” which measures the total amount of
Bitcoin moving from spot exchange wallets to derivatives. When the
value of this metric spikes up, it means whales are currently
moving a large number of coins to derivatives exchanges right now.
Such a trend usually occurs around lows in the price of the crypto
as whales look to get themselves long positions. Related Reading
| Bitcoin Recovery Slows Down As Whale Inflows Remain Elevated
On the other hand, low values of the indicator show whales aren’t
moving much coins to derivatives at the moment. This kind of trend
has historically lead to tops in the value of the coin. Now, here
is a chart that shows the trend in the Bitcoin all exchanges to
derivatives flow over the last couple of years: Looks like the
value of the metric has been quite high recently | Source:
CryptoQuant As you can see in the above graph, the Bitcoin spot to
derivatives flow has spiked up recently, suggesting that whale
activity is pretty high right now. In fact, the current value of
the indicator is actually the highest ever in the history of the
cryptocurrency, implying there is an all-time high rate of whales
on derivatives currently. Related Reading | Bitcoin May Have
Hit Bottom According to These Indicators, BTC Targets $23K?
Historically, the price of the crypto has observed significant
volatility whenever the metric’s value has been elevated. Based on
this trend, the quant believes that the value of the coin could
still see further fluctuations in the near future. The analyst also
notes that a reduction in the all exchanges to derivatives flow
will need to be there, for the volatility to die down. BTC Price At
the time of writing, Bitcoin’s price floats around $21.1k, up 4% in
the last seven days. Over the past month, the crypto has lost 27%
in value. The below chart shows the trend in the price of the coin
over the last five days. The value of the crypto seems to have
surged up over the last couple of days | Source: BTCUSD on
TradingView After hitting a low of below $18k a week ago, Bitcoin
has been trying to recover. So far, the crypto has managed to break
above $21k again, but it’s yet unclear whether this recovery will
last. Featured image from Unsplash.com, charts from
TradingView.com, CryptoQuant.com
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