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 certified analyst EgyHash highlighted that the Bitcoin Exchange Whale Ratio, which measures the proportion of the top 10 inflows to total exchange inflows, has climbed to levels not observed since last year.
This metric serves as a proxy for whale behavior and indicates that large entities currently dominate a significant share of exchange deposits. Historically, similar conditions have coincided with local price corrections, as large holders tend to front-run broader market moves due to their ability to influence liquidity conditions.
The whale ratio surge occurs in an environment where Bitcoin remains close to its all-time high but lacks sustained upward momentum. As price action stalls, the movement of significant volumes to exchanges may reflect a broader risk-off sentiment among large stakeholders.
If whales continue shifting funds into centralized platforms, the probability of increased sell-side activity may grow, placing additional weight on the market structure in the short term.
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 2024.
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 hold momentum after reaching a new all-time high. While some profit-taking is expected in such scenarios, 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’s 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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