Bitcoin (BTC) is facing renewed pressure in the market as large holders increase their activity on exchanges and overall investor sentiment continues to decline, based on recent on-chain data from CryptoQuant analysts.
CryptoQuant’s certified analyst EgyHash pointed out that the Bitcoin Exchange Whale Ratio, which assesses the share of the top 10 inflows relative to total exchange inflows, has risen to levels not seen since last year.
This metric acts as an indicator of whale activity, showing that substantial entities currently account for a significant portion of exchange deposits. Historically, such conditions have preceded local price corrections, as large holders often lead trends in the market due to their capacity to impact liquidity.
The increase in whale ratio occurs in a context where Bitcoin is hovering near its all-time high but is lacking consistent upward momentum. As the price movement stagnates, substantial volumes moving to exchanges may signal a broader risk-off sentiment among larger stakeholders.
Should whales continue transferring funds to centralized exchanges, the likelihood of heightened sell-side activity may elevate, placing further stress on the market structure in the near term.
Whale behavior can also significantly influence retail investor confidence. High-volume transfers to exchanges are frequently monitored by automated analytics tools and are highlighted in real-time on public dashboards. These signals may encourage smaller investors to adopt more cautious strategies, potentially magnifying downward pressure in both spot and derivatives markets.
Sentiment returns to pre-rally levels
At the same time, investor sentiment has sharply declined, according to metrics from CryptoQuant verified author Axel Adler Jr. The Bitcoin Sentiment Vote — Up or Down chart collects trader and investor opinions over time and has reverted to levels last observed in September 2024.
This timeframe immediately preceded the market’s last significant rally, indicating that optimism has returned to pre-breakout conditions.
The sentiment drop follows Bitcoin’s recent struggle to maintain momentum after reaching a new all-time high. While some profit-taking is to be expected, the broader change in sentiment suggests a faltering confidence in sustained price increases.
This trend is reflected in a decrease in bullish positioning and an increase in neutral or bearish outlooks across social and trading platforms.
A reset in sentiment at these levels indicates that market participants are feeling less assured about Bitcoin’s short-term trajectory despite strong macro fundamentals and ongoing institutional involvement.
Such discrepancies between price action and sentiment frequently result in uneven trading environments, characterized by lower conviction on both sides of the order book.
The combination of whale-driven exchange activity and diminishing sentiment underscores a cautious atmosphere in the current market. Analysts believe that interest from long-term investors and institutions will be crucial for Bitcoin to emerge from its current sideways trend.
In a recent report, Bitfinex highlighted that “deeper-pocketed investors” need to absorb the ongoing profit-taking actions to help elevate prices, which seems to be occurring.
After a series of outflows, Bitcoin exchange-traded funds (ETFs) recorded over $700 million in inflows over the past five trading days, according to data from Farside Investors. This mitigates approximately half of the $1.6 billion in monthly outflows documented until March 20.
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