Analysis: Binance Whale Bitcoin Inflow Ratio Hits Four-Month High
Summary
- As Bitcoin prices moved sideways in the $63,000-to-$64,000 range, the share of whale investors flowing into Binance climbed to its highest level in four months.
- Darkfost said Binance’s Whale Inflow Ratio rose to 0.52, the highest level in four months, indicating that exchange deposits by whales increased relative to those from retail investors.
- He said the rise in the Whale Inflow Ratio could increase Bitcoin selling pressure, though it does not necessarily mean prices will fall, and added that the market should watch whether Binance inflows from whales continue.
Forecast Trend Report by Period
Bitcoin traded between $63,000 and $64,000 while the share of whale inflows to Binance climbed to its highest level in four months.
CryptoQuant contributor Darkfost wrote on X on Aug. 5 that Binance’s Whale Inflow Ratio had risen to 0.52, the highest reading in the past four months.
The Whale Inflow Ratio measures the share of Bitcoin flowing into an exchange that comes from large investors. A higher ratio indicates whale deposits to exchanges are rising relative to those from retail investors.
Darkfost said that could increase selling pressure on Bitcoin.
Still, the indicator does not necessarily signal a price decline. Darkfost said sharp increases in the Whale Inflow Ratio have historically appeared not only near market tops, but also at bottoms marked by extreme fear and capitulation. He added that investors should watch whether whale inflows to Binance continue.
Uk Jin
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