Bitcoin (BTC) Whales Are Now in “Risk-Off Mode,” According to CryptoQuant CEO

The biggest Bitcoin (BTC) traders have recently become more risk-averse, according to the CEO of blockchain analytics firm CryptoQuant.

Cryptocurrency traders are closely watching the movements of large Bitcoin (BTC) traders, who have recently become more risk-averse, according to the CEO of blockchain analytics firm CryptoQuant.

Ki Young Ju, who has 349,000 followers on the social media platform X, points to the interexchange-flow-pulse (IFP) indicator, which tracks the flow of BTC between spot and derivatives exchanges.

Ju says the indicator shows that whale traders on derivatives exchanges are in “risk-off mode.”

Traders typically 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.

“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 over 3% in the last 24 hours.

Meanwhile, CryptoQuant recently reported that the Market Value to Realized Value (MVRV) indicator for Ethereum (ETH) is rising faster than the MVRV for Bitcoin.

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.

According to CryptoQuant, this development suggests that ETH’s market is heating up.

“This is interesting because historically, when Ethereum surges, other alts tend to follow.”

At time of writing, Ethereum is valued at $3,366, down more than 4% over the last 24 hours.

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