Bitcoin (BTC) is experiencing heightened volatility as a recent market correction tests investors across the spectrum, from retail participants to institutional players.
Data from CryptoQuant indicates a notable uptick in whale activity on Binance, while Glassnode reports that overall on-chain signals remain subdued, suggesting cautious market sentiment.
Whale Activity on the Rise
According to blockchain analytics firm CryptoQuant, the whale inflow ratio, which measures BTC inflows from the 10 largest transactions relative to total inflows, rose sharply from 0.4 to 0.62 between February 2 and 15.
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The increase signals a significant resurgence of whale activity on Binance, the world’s largest cryptocurrency exchange by trading volume.
Analysts note that while this indicates a higher share of whale inflows, it may also reflect rising sell-side pressure in the market.
As per CcryptoQuant’s analysts, part of these inflows can be attributed to a well-known whale, Garrett Jin, also referred to as “19D5” or the “Hyperunit whale,” who reportedly moved close to 10,000 BTC onto Binance during this period.
Analysts note that the recent wave of large BTC transfers to Binance appears to be part of a broader trend, driven both by the exchange’s deep liquidity and by market uncertainty, which is prompting investors to reconsider their positions.
Market Demand Remains Soft
Meanwhile, on-chain data platform Glassnode highlights that despite price rebound, on-chain signals remain weak for Bitcoin.
According to their latest report, Bitcoin price rebounded toward $70,000 after a recent decline, but “structure still looks reactive, with attempts to recover meeting overhead supply and follow-through remaining limited.”
On-chain activity and capital flows continue to decline. The total value of Bitcoin transfers, adjusted for large holders, dropped from $9.7 billion to $6.6 billion, marking a nearly 32% fall and pointing to soft network demand.
Profit and loss metrics have improved from depressed levels but remain in a low regime.
The share of Bitcoin in profit rose slightly to 55.2%, while the realized proffit and loss ratio slightly improved from -1.3 to -1.0, indicating losses are easing but still outweigh gains.
Why This Matters
The surge in whale activity points to large holders potentially preparing to sell, putting pressure on Bitcoin’s price. Meanwhile, weak on-chain signals and declining transfer volumes show soft market demand, suggesting that any rebound may be fragile and short-lived.
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People Also Ask:
Whale activity refers to large cryptocurrency holders moving or trading significant amounts of digital assets, which can influence market prices.
Not necessarily, but rising whale inflows to exchanges can indicate potential sell-side pressure, which may affect market momentum.
A fragile rebound occurs when prices recover briefly, but low demand and weak fundamentals make the rise unsustainable.
