On-chain crypto analytics firm CryptoQuant has revealed on social media that earlier this month a total of $131 billion worth of bitcoin were moved in a single day, with only 1% of that amount being deposits and withdrawals to cryptocurrency exchanges.
The firm’s bitcoin exchanges fund flow ratio, which measures the ratio of BTC transactions “involving all exchange to BTC transfer network-wide” reached a two-year low. The metric decreasing, the firm adds, indicates an increase in over the counter (OTC) deals.
The large amount of BTC being moved and the fund flow ratio dropping to a two-year low suggests that “some is buying BTC a lot,” according to the firm’s CEO Ki Young Ju. Per his words, if a large entity announces they are buying bitcoin “bears could be in trouble.”
The CEO added a similar situation occurred in September 2020, before the price of bitcoin surged from around $11,000 to a new all-time high near $64,000 earlier this year. Ki Young Ju shared a tweet he published back then showing a large amount of BTC transferred on-chain, while the fund flow ratio plunged.
Back in February, Ki Young Ju accurately predicted the price of bitcoin would hit $50,000 citing an influx of stablecoin deposits from whales as a bullish signal. In January, the CEO said he has “no doubt” the price of bitcoin will hit $100,000 this year, even though in the short-term the bears could take over.
Ki Young Ju tracked data on the San Francisco-based cryptocurrency exchange Coinbase as its outflows had seemingly shown the presence of institutional investors buying up BTC. Earlier that month, $1.7 billion outflows from the exchange suggested institutions were buying bitcoin above $30,000.
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