The CEO of CryptoQuant, a blockchain analytics firm, has stated that the largest Bitcoin traders are becoming more cautious. Ki Young Ju, addressing his 349,000 followers on social media platform X, explained that the interexchange-flow-pulse (IFP) indicator is indicating that whales are adopting a “risk-off mode.” The IFP tracks the movement of BTC between spot and derivatives exchanges, providing insight into market sentiment. Ju pointed out that the IFP is currently below its 90-day moving average, signaling a shift in market dynamics. At the time of writing, Bitcoin is trading at $62,290, experiencing a decline of over 3% in the past day.
In regards to Ethereum, CryptoQuant recently highlighted that ETH’s Market Value to Realized Value (MVRV) indicator is rising at a faster rate than Bitcoin’s MVRV. The MVRV ratio assesses whether a digital asset is undervalued or overvalued by comparing its market capitalization to its realized capitalization. The firm suggests that this increase in ETH’s MVRV indicates a heating up of the Ethereum market, which historically leads to other altcoins following suit. Ethereum is currently valued at $3,366, experiencing a decline of over 4% in the day.
Please note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at the individual’s own risk, and any resulting losses are the responsibility of the investor. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor is it an investment advisor.
