Analysis: Binance Whale Inflow Ratio Rises as Bitcoin Rally Continues

Whale deposits to Binance are expanding again even as Bitcoin continues to rise, according to an analysis by CryptoQuant.

Darkfost, a contributor to the on-chain data platform, wrote on May 3 that Binance’s Whale Inflow Ratio has resumed climbing during Bitcoin’s recent advance, signaling that moves by large market participants warrant close attention.

The ratio previously rose to 0.64 on Feb. 14 and 0.61 on March 13. More recently, it climbed again to 0.51 from 0.40.

The Whale Inflow Ratio measures the share of an exchange’s total inflows accounted for by its 10 largest transactions. A higher reading generally indicates that large market participants are moving funds more actively.

Darkfost said the indicator does not necessarily point to immediate selling pressure. Rather, it is a stronger gauge of the intensity of large capital flows than of market direction. Even so, such activity bears watching because fund movements by large holders can have a significant impact on market structure.