Bitcoin (BTC) Exchange Whale Ratio Soars to 2024 Highs as Large Holders Increase Exchange Activity

Bitcoin (BTC) is encountering renewed market pressure as large holders increase exchange activity and investor sentiment deteriorates, according to recent on-chain data from CryptoQuant analysts.

CryptoQuant analysts observed a shift in the market as large Bitcoin (BTC) holders increased their exchange activity and investor sentiment deteriorated, according to recent on-chain data.

EgyHash, a certified analyst at CryptoQuant, noted that the Bitcoin Exchange Whale Ratio, measuring the top 10 inflows versus total exchange inflows, had risen to levels last seen in 2024. This metric, serving as a proxy for whale behavior, showed that large entities currently held a dominant share of exchange deposits.

Historically, such conditions have coincided with local price corrections, as large holders tend to front-run broader market moves due to their ability to affect liquidity.

“This contrasts with periods where smaller investors are more evenly distributed across the market, leading to a more gradual response to price trends,” EgyHash added.

The whale ratio surge comes as Bitcoin remains closely bound to its all-time high but lacks sustained upward momentum. With price action stalling, the movement of significant volumes to exchanges may indicate broader risk-off sentiment among large stakeholders.

If whales continue shifting funds to centralized platforms, the probability of increased sell-side activity may rise, placing additional weight on the market structure in the short term.

Chart: EgyHash, CryptoQuant

Whale behavior also tends to affect retail confidence. High-volume transfers to exchanges are often tracked by automated analytics tools and flagged in real time across public dashboards. These signals can prompt smaller investors to adopt more defensive postures, potentially reinforcing downward pressure across spot and derivatives markets.

Sentiment reverts to pre-rally levels

Concurrently, investor sentiment has declined sharply, according to metrics from CryptoQuant verified author Axel Adler Jr. The Bitcoin Sentiment Vote — Up or Down chart aggregates trader and investor outlooks over time and has returned to levels last seen in September.

This period immediately preceded the market’s last major rally, suggesting that optimism has reverted to pre-breakout conditions.

The drop in sentiment follows Bitcoin’s recent failure to maintain momentum after reaching a new all-time high. While some profit-taking is to be expected in such instances, the broader shift in perception suggests a weakening belief in sustained upside.

This dynamic is reflected in reduced bullish positioning and a rise in neutral or bearish outlooks across social and trading platforms.

A sentiment reset at these levels indicates that market participants are less confident in Bitcoin’s short-term trajectory despite strong macro fundamentals and continued institutional involvement.

Such dislocations between price action and sentiment often create choppy trading environments, with lower conviction on both sides of the order book.

The combination of whale-driven exchange activity and waning sentiment highlights a cautious tone in the current market. Analysts believe interest from long-term investors and institutions will be key to Bitcoin breaking the current sideways action.

In a recent report, Bitfinex highlighted how “deeper-pocketed investors” must absorb the ongoing profit-taking action to boost prices, which seems to be happening.

After a streak of outflows, Bitcoin exchange-traded funds (ETFs) registered over $700 million in inflows for the past five trading days, according to Farside Investors’ data. This softens by nearly half the $1.6 billion in monthly outflows registered until March 20.

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