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The biggest Bitcoin (BTC) traders have recently become more risk-averse, according to the CEO of blockchain analytics firm CryptoQuant.
Ki Young Ju tells his 349,000 followers on the social media platform X that the interexchange-flow-pulse (IFP) indicator, which tracks the flow of BTC between spot and derivatives exchanges, is signaling that whales are now in “risk-off mode.”
Traders deposit assets to derivatives exchanges and use them as collateral to take on more risks via leveraged positions.
Ju notes that the IFP is currently below its 90-day moving average.
“[The] Bitcoin IFP indicator turned red. Whale traders on derivatives exchanges are in risk-off mode…
IFP (Interexchange-Flow-Pulse)… tracks Bitcoin movements between spot and derivative exchanges, reflecting market sentiment.
Increased flows from spot to derivative exchanges could indicate sending BTC as collateral for new/existing positions. Whales moving BTC to derivatives often signal long positions, especially at cyclical market bottoms.
The strategy targets Bitcoin exposure during IFP uptrends, with IFP’s 90-day moving average crossovers marking market shifts (green and red areas on the chart).”
At time of writing, Bitcoin is trading at $62,290, down more than 3% in the past day.
Looking at Ethereum, CryptoQuant recently said ETH‘s Market Value to Realized Value (MVRV) indicator is rising faster than Bitcoin’s MVRV.
MVRV is the ratio of a digital asset’s market capitalization relative to its realized capitalization (the value of all the assets at the price they were bought). It is used to assess whether the token is undervalued or overvalued.
Says the firm,
“This suggests that ETH’s market is heating up. Historically, when Ethereum surges, other alts tend to follow.”
At time of writing, Ethereum is worth $3,366, down over 4% on the day.
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Generated Image: Midjourney
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