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According to data, Bitcoin whales are currently sending significant sums to derivatives markets, an indication that the cryptocurrency may see increased volatility.
What exactly are whales doing?
BTC whale activity on futures markets appears to still be significant, as one expert explained in a post.
The “all exchanges to derivatives exchanges flow,” which counts the entire amount of Bitcoin going from wallets on spot exchanges to derivatives, is the important indication in this case.
When the value of this indicator increases, it indicates that whales are now transferring a significant amount of coins to derivatives markets.
As whales try to acquire long positions, this tendency typically happens around price lows for the cryptocurrency.
However, low levels of the indicator indicate that whales aren’t currently shifting many coins to derivatives. In the past, this type of tendency has caused coin values to the peak.
When the metric’s value has been high in the past, there has been a lot of volatility in the cryptocurrency price.
Based on this pattern, the quant predicts that the coin’s value may see more swings in the near future.
The expert adds that for the volatility to subside, there must be a decrease in the flow from all exchanges to derivatives.
BTC current value
At the time of writing, the price of Bitcoin is hovering at $21.1k, up 4% over the previous week.
The value of the cryptocurrency has dropped by 27% in the last month.
Bitcoin has been attempting to rebound after falling to a low of around $18k a week ago.
The cryptocurrency has so far managed to breach above $21k once more, but it’s not yet apparent if this rebound will persist.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
