Glassnode’s latest analysis reveals a surge in Bitcoin whale inflows, igniting concerns over market volatility and potential impact on the BTC price.
Whales Drive Bitcoin Exchange Activity
According to the tweet, the netflows of whales to exchanges have historically oscillated within the range of ±5,000 BTC per day over the past five years. This means that on any given day, there was generally a balance between whales depositing and withdrawing Bitcoin from exchanges, indicating a somewhat stable market.
However, what sets June and July of this year apart is the sustained elevated inflow bias of whales to exchanges. Glassnode’s analysis revealed that during these two months, there has been a consistent influx of Bitcoin to exchanges by whales, with the netflow ranging from +4,000 to +6,500 BTC per day.
This heightened activity of whales depositing Bitcoin onto exchanges has raised eyebrows among crypto enthusiasts and investors. Such an influx could potentially lead to an oversupply of Bitcoin on exchanges, which may exert downward pressure on its price if demand does not match the increased supply. Consequently, this could result in heightened volatility in the market.
While Glassnode’s tweet does not delve into the reasons behind the sustained elevated inflows, it appears that whales might be preparing for major market movements, possibly signaling their anticipation of a price correction or a significant rally. Market participants and traders are closely monitoring the situation to gauge how this imbalance between whale inflows and outflows could affect the overall market sentiment and, in turn, influence Bitcoin’s price trajectory.