Bitcoin Whales Indicate Bull Market, According to Quant Analyst
The CEO of CryptoQuant suggests that Bitcoin (BTC) whales are demonstrating a “risk-on mode,” which is a positive signal for the market. Crypto analyst Ki Young Ju explains that BTC whales are becoming more active in one specific area of the crypto market. This behavior indicates that investors are willing to take on more risk.
Using the “interexchange flow pulse” indicator, the analyst’s chart shows the cumulative net flows between Coinbase and derivative exchanges over one year. When this metric rises above the 90-day moving average (MA), it suggests a bull market for Bitcoin. This pattern has occurred in previous bull markets, such as in 2017 and 2019-2021.
In December 2022, the analyst expressed his watchfulness over this indicator as a potential signal for a bull market. If the current trend continues, it could indicate a return to a “risk-on” attitude in the crypto market for 2023.
Bitcoin Price Update
As of now, BTC is valued at $27,423, experiencing a 1.3% decrease in the past 24 hours.
Hot Take: Bitcoin Whales Signal Bullish Sentiment
The recent activity of Bitcoin whales, as indicated by CryptoQuant’s CEO, suggests that the cryptocurrency market is entering a bull phase. The willingness of these influential investors to take on more risk by moving their BTC holdings to derivative exchanges signifies a “risk-on mode.” This behavior aligns with previous bull markets, highlighting the potential for an upcoming surge in Bitcoin’s value. By closely monitoring the “interexchange flow pulse” indicator, investors can gain insights into the market sentiment and potential price trends. If this trend continues, it could mark the return of a bullish attitude in the crypto market for 2023.
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