The end of the year for large holders of Bitcoin, among which a considerable share is occupied by public mining companies, is an excellent reason to fix part of the profit and improve financial performance. After the fall of the cryptocurrency from $ 57 thousand to $ 42 thousand, the whales again increased the supply of Bitcoin to the exchanges, preparing for another wave of sales.
The “whale exchange” coefficient records the ratio of inflows and outflows of large amounts in relation to the total inflow and outflow. In early December, the influx of large capital (coefficient 0.95) led to a price correction of 26%, the continuation of this trend foreshadows a correction of Bitcoin from current levels to $ 36 thousand.
Traders in the futures market are less supportive of the whales’ sentiment, as the financing rate has returned from the negative zone. However, there is no reason to talk about optimism yet. The financing rate increases when bulls dominate when using leverage, and falls when bears predominate. Now it is equal to 0.
The share of institutional investors in Ethereum is significantly lower, so the December sale affects this coin to a lesser extent. So, in November, the volume of funds in investment funds with Bitcoin amounted to $48.7 billion, and with Ethereum – $16.6 billion.
The quarterly futures premium of the March 2022 Ethereum contract also surpasses Bitcoin:
2.9% vs. 2.6%, respectively. This confirms a higher assessment of the altcoin’s growth prospects for the next four months. In addition, unlike Bitcoin, Ethereum practically did not lose in price in November, which is why the cross-rate updated the three-year maximum.
Whales are preparing for the end of the year and are selling off part of Bitcoin stocks, which may lead to a new wave of correction in the near future.