EWR Spikes to 0.6 – Are Bitcoin Whales Preparing for a Big Selloff?
Bitcoin Whale – The recent resurgence of whale activity has driven the Exchange Whale Ratio (EWR), a key metric for tracking Bitcoin (BTC) market movements, to its highest level in months. According to CryptoQuant, the EWR has surpassed the 0.6 mark, which historically signals that large holders are reallocating their assets, potentially indicating the start of selling pressure.
What is the Exchange Whale Ratio?
The EWR tracks the inflows from the top-10 Bitcoin exchanges and provides insights into the actions of large investors, often referred to as “whales.” This metric has been climbing since the fourth quarter of 2024, which coincides with major changes in Bitcoin’s price. For instance, Bitcoin reached an all-time high of $106,128 on December 17, but has since entered a correction phase, sliding approximately 20% to $84,619 by March 23.
EWR and Market Movements
The EWR spiked during Bitcoin’s climb from $55,000 to over $100,000, signaling increased whale activity before the price peaked. Interestingly, whale inflows began increasing ahead of the price top, suggesting that whales were already preparing for profit-taking. A December 2024 EWR reading of 0.36 also saw whale inflows rise despite the price decline, signaling a distribution phase.
Shifting Netflows and Market Sentiment
Exchange netflows have transitioned from bullish outflows to signs of redistribution, indicating a change in market behavior. Between April and October 2024, monthly outflows ranged from 30,000 to 60,000 BTC. However, in November 2024, net inflows surged to +7,033 BTC, indicating that early movers were booking profits.
The Net Unrealized Profit/Loss (NUPL) ratio also offers valuable insights, showing a decline from 0.627 to 0.480 between December 2024 and March 2025, reflecting a period of profit realization by whales and long-term holders.
Despite recent market corrections, Bitcoin’s market remains profitable, as indicated by the positive NUPL ratio, suggesting that whales are still active, albeit in a reduced capacity.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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