Bitcoin Whales Adopt Cautious Approach as Market Sentiment Shifts
Bitcoin's biggest traders are becoming more cautious, according to CryptoQuant's CEO Ki Young Ju.
He noted on social media that the interexchange-flow-pulse (IFP) indicator, which tracks the movement of Bitcoin between spot and derivatives exchanges, shows a shift to a “risk-off mode” among whales. This means they are reducing their leveraged positions and adopting a more conservative strategy.
#Bitcoin IFP indicator turned red. Whale traders on derivatives exchanges are in risk-off mode. pic.twitter.com/wv1XK78FoN
— Ki Young Ju (@ki_young_ju) June 22, 2024
The IFP is currently below its 90-day moving average, signaling a decrease in activity from these major players. When Bitcoin is moved to derivatives exchanges, it usually indicates preparation for leveraged trading. However, the current trend suggests that these traders are pulling back.
READ MORE: Michael Saylor Highlights Bitcoin’s Remarkable Returns and Current Challenges
At present, Bitcoin is trading at $59,245, down over 7% in the last day. Meanwhile, Ethereum (ETH) is experiencing a different trend.
CryptoQuant’s analysis reveals that Ethereum’s Market Value to Realized Value (MVRV) ratio is increasing more rapidly than Bitcoin’s. The MVRV ratio, which compares an asset’s market capitalization to its realized capitalization, helps determine if it is undervalued or overvalued.
This rising MVRV for Ethereum indicates a heating market, potentially leading to a broader rally in other altcoins. Historically, when Ethereum gains momentum, other cryptocurrencies often follow suit.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
