The 30-day total value of Bitcoin sent to Binance by small investors has reached a six-month high, while whale inflows to the exchange have declined for nearly two months.
An analysis shared by CryptoQuant points to a clear divergence among Bitcoin investors. The 30-day total of BTC inflows to Binance from small investors rose from $5.5 billion to $10.75 billion. This means the dollar value of the Bitcoin this group sent to the exchange nearly doubled.
Large investors, meanwhile, have moved in the opposite direction. The 30-day total of whale BTC inflows to Binance fell from $5.9 billion at the end of August to $3.8 billion. The difference between the two groups’ flows raises the question of why their responses to the recovery have diverged.
Do small investors see the rebound as an opportunity to exit?
The analysis notes that small investors may be viewing the recovery, which followed a decline lasting about a year, as an opportunity to sell at more favorable levels. The increase in BTC sent to Binance provides the basis for this interpretation.
Bitcoin transferred to an exchange may be ready for sale, but inflow data does not measure completed sales. Therefore, $10.75 billion is not the value of the Bitcoin sold by small investors, but the total value of exchange inflows over 30 days.
Why is it important that whales are not doing the same?
The decline in BTC sent to exchanges by whales is interpreted in the analysis as a sign that large investors are in no rush to sell at current prices. As small-investor inflows accelerate while whales send less BTC, the two groups appear to be approaching the recovery differently.
If the price continues to rise, the point to watch is whether whale inflows start increasing again. Large investors beginning to move more Bitcoin to exchanges could indicate that the current divergence is changing.
Not investment advice.