Bitcoin ($BTC) Whales and Big Money Still on ‘Risk-On Mode’, Analyst Says

In the volatile cryptocurrency market, understanding investor sentiment can be a crucial, yet tricky source of information. The CEO and co-founder of CryptoQuant, Ki Young Ju, has recently suggested large investors are still engaging with the market with a “risk-on mode.”

According to a post Ki Young Ju shared in the microblogging platform X (formerly known as Twitter) with his over 300,000 followers, Bitcoin whales are still taking risks by sending their coins to derivatives trading platforms.

#Bitcoin whales are still in a risk-on mode, sending $BTC to derivative exchanges.

h/t @jjcmoreno https://t.co/kaIL3yfgT2 pic.twitter.com/AgPwQg5ZG2

— Ki Young Ju (@ki_young_ju) October 4, 2023

The chart by the analyst displays the “interexchange flow pulse,” a measure of the net one-year flows of BTC between Nasdaq-listed cryptocurrency exchange Coinbase and derivative exchanges.

When the metric rises, it implies that investors are moving more BTC from spot to derivative exchanges, which shows their increased risk appetite.

The chart reveals that Bitcoin has been in a bullish phase when the indicator surpasses its 90-day moving average (MA), as it currently does. This pattern was also seen in 2017 and 2019-2021. When the indicator falls below its 90-day MA, Bitcoin has entered a bearish phase.

While the cryptocurrency market has been trading sideways over the last few weeks, major financial powerhouses that collectively manage an astounding $27 trillion in assets are making inroads into the world of Bitcoin and cryptocurrency after a race to list the first spot Bitcoin exchange-traded fund (ETF) in the United States kicked off.

As noted by CoinShares Chief Strategy Officer, Meltem Demirors, at least eight financial behemoths, which include BlackRock, Fidelity, JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco, and Bank of America are “actively working to provide access to Bitcoin and more.”

BlackRock, the world’s largest asset manager, took a pioneering leap on June 16 with a spot Bitcoin exchange-traded fund application, seemingly igniting a domino effect as peers rushed to file similar applications.

The $27 trillion figure, it’s important to point out, represents a grand total of assets under management across the aforementioned institutions, and only a minuscule fragment of this gargantuan sum is anticipated to be channeled into cryptocurrency investments.

Featured image via Unsplash.

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