- Bitcoin whales in South Korea have been selling heavily across major exchanges throughout the past week. Data shows that multiple $100 million deposits to Bithumb have been spotted in the last three days alone.
- By volume, South Korea has a much smaller cryptocurrency exchange market compared to the United States. Yet, South Korea’s cryptocurrency exchanges have seen massive inflows that are comparable with other major markets.
- Large inflows into exchanges typically indicate selling pressure from whales because high-net-worth investors do not keep their holdings on exchanges. Hence, when capital flows into a trading platform, it shows an intent to sell.
- In recent weeks, Bitcoin has been trading around 5% higher on South Korean exchanges. This might have encouraged whales to arbitrage the premium, driving massive inflows.
- In the near term, the pattern of whales taking profit and new buyers from the U.S. accumulating Bitcoin should continue. But the biggest variable that could alter the market dynamic is the strength of the U.S. dollar, or namely, the USD strength index.
- Read the full story here
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