Crypto Quant chief executive Ki Young Ju is issuing a warning that big-time Bitcoin holders are moving their holdings to the crypto exchange Coinbase.
The head of the blockchain intelligence platform says he believes the leading cryptocurrency may go through a period of correction as more whales deposit their BTC on Coinbase.
“Too many BTC whales on Coinbase. I’m still long-term bullish, but we might face some corrections or sideways until whales become inactive on spot exchanges.
Exchange Whale Ratio is the relative size of the top 10 inflows to total inflows. Historical data for Coinbase Whale Ratio. When whales are active(over 90%) on Coinbase, the BTC price will likely be going sideways or bearish.”
While Ki Young Ju is short-term bearish on BTC, widely-followed blockchain analyst Willy Woo believes that the presence of whales in exchanges is no longer a reliable indicator of a market sell-off.
“It used to be that peaks in destruction or dormancy would be a bad sign for the market as old coins have more experienced masters, thus smarter money; this would predict a price drop. These days not always, OG whales also sell bottoms. Smarter money has arrived.”Â
On-chain analyst Cole Garner appears to echo Woo’s sentiments as he reveals that the amount of BTC held in all crypto exchanges continues to decline.
From nearly three million BTC earlier this year, the amount of Bitcoin stored in all exchanges has plummeted to 2.36 million BTC, indicating that holders are waiting for higher prices before selling their crypto assets.
“Bitcoin exchange liquidity is melting down. Institutions aren’t prepared for scarcity like this.”
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