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Bitcoin outflows extremely bullish sign, according to CryptoQuant CEO

Ki Young Ju sees Coinbase outflows as an excellent sign for the health of Bitcoin and that a rally might be the result of the OTC indicator.s

CryptoQuant CEO Ki Young Ju sees a bullish rally on the cards as a result of the recent Bitcoin outflows from Coinbase.

The cryptocurrency data analyst firm points to more than 15,000 Bitcoin (which is worth approximately $515 million) were taken out from Coinbase. Based on several factors, Ki Young Ju believes this is likely as part of over-the-counter (OTC) transactions from institutional investors.

Splitting bigger wallets (such as those containing more than 15,000 Bitcoin) into smaller wallets (such as those containing between 1,000 and 5,000 Bitcoin tokens) increases security, but also raises security costs involved.

Why outflows could be bullish for Bitcoin

Ki Young Ju sees the Coinbase outflows as a bullish sign for the cryptocurrency market because it represents that investors are moving their tokens to storage. If investors are moving significant amounts of Bitcoin to storage, such as cold wallets, it means the investors sees the cryptocurrency as worthwhile holding on to rather than selling. With Bitcoin in cold wallets, the token won’t be traded or exchanged.

He continued:

Tokens Transferred is the number of Bitcoins transferred on the network. If this value goes up and the fund flow ratio for all exchanges goes down, it implies that huge OTC deals are on-going… This $BTC bull-run never stops as long as these OTC indicators keep saying institutional-buying.”

Posted: Feb 02, 2021 Author: Becky Categories: Coin News