On-chain data shows that the Bitcoin whale has been on the rise lately, as market leverage has remained around an all-time high.
Bitcoin Whale and leverage ratios are around ATHs right now
As pointed out by an analyst at CryptoQuant MailCurrently, Bitcoin investors are participating in some high-risk trading in the futures market.
The “whale exchange ratio“It is an indicator that measures the ratio between the sum of the top ten inflows to exchanges, and the total exchange inflows.
Since the top ten transfers to exchanges are supposed to be from whales, this metric tells us whether or not whales are active in the market right now.
When the ratio value is high, it means that whales are making a significant contribution to exchange flows at the moment.
Now, here’s a chart showing the trend in the bitcoin whale percentage over the past few years:
Looks like the value of the metric has been elevated in recent days | Source: CryptoQuant
As you can see in the chart above, the quantity from the post outlines the relevant trend periods for the bitcoin exchange whale percentage.
It seems that when the indicator reaches a top and then starts to decline after that, the price has taken a big hit as well.
From the chart, it’s clear that the scale has gone up over recent months, and is now moving around the highest values ever.
data for “Estimated leverage ratioThis indicator tells us how much leverage the average trader uses in the futures market.
Bitcoin leverage has increased sharply recently and is also at a new ATH level now, which indicates that investors are taking a lot of risk at the moment.
Historically high market leverage has led to the price of BTC being more volatile. Under these circumstances, if the whale percentage also starts declining and follows the same trend as in the past now as well, things could go down very quickly for the cryptocurrency.
At the time of writing this report, Bitcoin price It is floating around $19.5K, up 2% in the past seven days. Over the past month, the value of the cryptocurrency has gained 1%.
The chart below shows the currency price trend over the past five days.
The value of the crypto seems to have been trending sideways since the plunge a few days back | Source: BTCUSD on TradingView
Featured image from Peg Lemkuil on Unsplash.com, charts from TradingView.com, CryptoQuant.com