The rate at which “whales” are flowing into exchanges has slowed down. What does this mean?

"Whales" are investors or traders who hold large amounts of Bitcoin and have recently stopped depositing funds into cryptocurrency exchanges.
Data extracted by blockchain analytics firm CryptoQuant shows that inflows into the world’s major trading platforms have begun to drop sharply since September 16. The trend suggests a surge in the so-called HODLING sentiment, meaning wealthy traders prefer to hold onto Bitcoin rather than trade them for other assets.
“Fortunately, the rate of whale inflows seems to be decreasing,” CryptoQuant CEO Ki-Young Ju tweeted. “It seems that the price of Bitcoin is following the traditional markets lately. I think the only thing we can do at this moment is to watch the movements of whales, but most basic on-chain indicators are healthy.”

Bitcoin’s Road to Recovery <br />Observers believe that “whales” play a major role in determining Bitcoin’s market trends. The risk of this cryptocurrency is falling sharply as a large amount of funds are noticed to flow into exchanges. On the other hand, the decrease in deposits eliminates the psychological selling pressure of Bitcoin.
Ju predicted the above correlation before Bitcoin fell below $10,300 on Wednesday. On September 21, he envisioned a short-term price correction for the cryptocurrency based on a surge in “whale” activity. Bitcoin did subsequently experience a market correction, falling more than 7.81% from its previous high of nearly $10,990.

Other Bitcoin movements in recent history have also shown whale-led market trends. For example, on March 8, CryptoQuant linked a 50% drop in Bitcoin’s price to an inflow of 6,000 BTC across multiple exchanges.
But today is different, as BTC/USD trades near $10,300, Bitcoin whales are showing signs of accumulation. A chart published by on-chain data tracker WhaleMap points out that clusters are forming nearby. It indicates that unused Bitcoin is increasing.
The analyst explained: “Bubbles show where unspent Bitcoin is accumulating. The bigger the bubble, the more Bitcoin is being used here, while unspent means that these Bitcoins have not been moved since they ‘flowed’ into the whale wallet.”

Combining WhaleMap’s chart with data from CryptoQuant, it appears that Bitcoin could be poised to recoup some of its recent losses in the coming sessions.
Macro Market Risk <br />As long as Bitcoin trades on the back of macroeconomic fundamentals, short-term sentiment—even bullish—can shift without interruption. As Ju noted, the cryptocurrency closely follows daily trends in traditional markets, which could exacerbate the bearish bias of “whales.”
One of the main reasons for the potential Bitcoin decline is the strengthening of the U.S. dollar. Traders and investors have recently increased their bids for the greenback as the U.S. Congress has failed to finalize a second coronavirus relief bill. This has put risk assets including U.S. stocks and gold under bearish pressure.

Economists believe that the US government's fiscal aid will not be in place until after the presidential election in November, which is expected to provide more room for the dollar to rebound, while further improving Bitcoin's short-term bearish bias. (Blockchain Knight)