Whale Inflows to Exchanges Are Rising — What It Means for BTC

Latest on-chain data indicates that crypto whales are sending higher numbers of bitcoin (BTC) to trading platforms. This may not be a cause for alarm yet, as such movements can have several meanings.

Analysts suggest that Bitcoin whales may be either locking in profits or simply rotating capital. Although both moves often significantly affect BTC, the former could trigger a deeper correction or a consolidation phase for the leading digital asset.

Whale Inflows to Exchanges Spike

According to CryptoQuant analyst Darkfost, focusing on whale movements every month will provide a clearer view of the trend. This will also help decipher how much the trend could affect BTC.

Bitcoin has recorded several all-time highs within the past few months. These highs subsequently marked tops that preceded correction or consolidation phases. During these market tops, the monthly average of whale inflows to crypto exchanges surpassed $75 billion.

Current whale inflows have increased, although not significantly. Darkfost revealed that the figure increased by $17 billion, from $28 billion to $45 billion, between July 14 and 18. This suggests that whales took advantage of bitcoin’s new high to take some profits. BTC surged to a high of $123,000 on July 14.

BTC Continues Consolidation

The market research firm Glassnode reported a similar analysis with CryptoQuant, stating that Bitcoin’s seven-day simple moving average (SMA) is approaching 12,000 BTC. While this represents one of the highest volumes this year and is comparable to November levels, it is still below last year’s peak.

However, upon closer examination, Darkfost found that daily whale inflows to exchanges are declining from their latest peak. While this change is to be monitored in the near term, it suggests that whales may have eased off in taking profits or rotating capital.

“If this trend continues it could help easing the overall selling pressure as whales can exert significant selling pressure, just as they did during the last two tops,” the CryptoQuant analyst added.

Meanwhile, BTC has been consolidating over the past few days after reaching a high of $123,000. At the time of writing, the asset had experienced no significant changes in its prices. Regardless of the current phase, both institutional and retail investors have been buying. This is evident in high spot exchange-traded fund inflows and multiple BTC purchase reports from Bitcoin treasury companies, such as Strategy, Sequans, and The Blockchain Group.