TL;DR Breakdown
- Crypto withdrawn by large investors hit ATH.
- Crypto reserves on exchanges hit 4-year low.
CryptoQuant, a top crypto analytical provider, has revealed that crypto whales are cashing out of the market.
The on-chain analysis provider discovered that the number of redeemed stablecoins hit an all-time high, recently indicating that some whales are really cashing out.
However, analysts are unsure of the reason behind the action if the whales are cashing out ahead of the market’s volatility in response to the December 16th Federal Open Market Committee (FOMC) announcement. However, it is also one of the uncertainties.
“Not sure if the whales are chasing out ahead of the market’s volatility in response to the December 16th FOMC announcement, but that’s also one of the uncertainties.
“So far, we still are careful until some uncertainties will be resolved, a cryptoQuant analyst said.
Whales activity: Crypto exchange balance hit 4-year low
CryptoQuant reported that the percentage of balance on crypto exchanges hit a 4-year low. According to their findings, more and more Bitcoin are withdrawn from exchanges currently valued at 11.98 percent of the total supply is on central exchanges. The last time the percentage hit those low levels was in January 2018.
Similarly, while the activity was detected, buying and selling ratio skyrocketed on Deribit, one of the top Bitcoin and Ethereum Options Exchange and derivative platforms.
According to the analytical platform, the market buys and sells ratio of perpetual on Deribit Exchange showed a sick leading indicator.
It points at a 30 day weighted moving average (WMA) while strong bullish trends in the metric preceded every strong bullish price trend of the bull.
It’s worth noting, though, that this doesn’t necessarily mean that the whales in question have been selling BTC now. Ideally, a massive dump of coins by whales is a negative indication. However, crypto prices rallied in recent days.
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