The Exchange Whale Ratio—the ratio of the volume of bitcoins sent by whales to exchanges to that of retail investors—has fallen to the lowest level of the year.
CryptoQuant CEO Ki Young Ju drew attention to the metric.
Exchange Whale Ratio hits the year low—the fewer whales moving to exchanges, the less dumping, and makes the higher #BTC price. pic.twitter.com/yvJltakA36
— Ki Young Ju (@ki_young_ju) September 17, 2020
As the analyst explained, the less money whales move to exchanges, the lower the chance of a price drop, and consequently the higher the likelihood of a price rise.
The last time this indicator stood at a comparable level was in April 2019, after which Bitcoin’s price rose from $4,000 to $13,000 over several months.
The Exchange Whale Ratio represents the ratio of the relative size of the 10 largest deposits to the total daily inflow across all tracked exchanges.
Analysts at Glassnode previously reported that Bitcoin is flowing out of the hands of large holders. They note that balances of wallets with 10, 100 and more BTC are shrinking, and the number of addresses holding 1 BTC or more reached a record 823,992 on 16 September.
Earlier this week, entrepreneur Robert Kiyosaki stated that he expects declines in bitcoin, gold and silver after an effective coronavirus vaccine is developed. However, he regards this moment as the best time to buy those assets.
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