$131 Billion Bitcoin Transferring Suggests Massive Entities Are Shopping for $BTC Over the Counter
On-chain cryptanalysis firm CryptoQuant announced on social media that it moved a total of $ 131 billion worth of bitcoin in a single day earlier this month, with just 1% of that amount being deposits and withdrawals on cryptocurrency exchanges.
The company’s Bitcoin Exchange Fund Flow Ratio, which measures the ratio of BTC transactions that include “all exchanges, to BTC transfers across the network,” hit a two-year low. The decreasing metric, the company adds, indicates an increase in over-the-counter (OTC) trades.
The large amount of BTC being moved and the fund flow rate plummeting to a two-year low suggests that “some are buying a lot of BTC,” according to the company’s CEO Ki Young Ju. According to him, bears could get into trouble if a large company announced it would buy bitcoin.
The CEO added that a similar situation occurred in September 2020, before the price of Bitcoin rose from around $ 11,000 to a new all-time high near $ 64,000 earlier this year. Ki Young Ju shared a tweet he posted at the time that showed a large amount of BTC being carried over on the chain while the fund flow ratio plummeted.
Back in February, Ki Young Ju accurately predicted that Bitcoin price would hit $ 50,000, citing the influx of stablecoin deposits from whales as a bullish signal. In January, the CEO said he had “no doubt” that Bitcoin’s price will hit $ 100,000 this year, although in the short term the bears may take the lead.
Ki Young Ju was tracking data on the San Francisco-based cryptocurrency exchange Coinbase as its outflows had apparently shown the presence of institutional investors buying BTC. Earlier in the month, outflows of $ 1.7 billion from the exchange suggested institutes buying bitcoins over $ 30,000.
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