CryptoQuant CEO: Bitcoin Could Face Correction As Institutional Investment Stalls

While crypto traders anticipate Bitcoin will soon break the $30,000 price point after today’s new all-time high of $29,200—CEO of CryptoQuant Ki Young Ju has warned about a potential correction as on-chain data indicates institutional investment into BTC has stalled.

Bitcoin price could face correction as institutional investment stalls

Bitcoin’s price has made yet another all-time high at over $29,200 today up by 640% since its lows in March when the COVID-19 pandemic emerged in many countries. BTC has surged over the last half of the year as institutional money began to pour into the crypto.

CryptoQuant CEO Ki Young Ju has revealed on-chain data that he believes could signal an incoming correction to the Bitcoin price and a short term reversal of its bull run—institutional money has stopped flowing into BTC at least for the moment.

Ki Young Ju tweeted on Dec. 31:

“Speculative guess, but BTC would have a correction when the spot inflow of institutional investors slows down. BTC needs to bring more institutional investors. For example, Grayscale BTC holdings are still 607k since 25 Dec.”

Arguably the most widely known institutional investment product of digital asset industry is Grayscale’s Bitcoin Trust. In the nascent and volatile world of Bitcoin and cryptocurrency, the institutions pay a high premium to not have to take custody of their own private keys, but still, get exposure to the underlying crypto asset.

As Ju explains, Grayscale has not increased its BTC holdings in over a week indicating a decline in institutional investment.

bybit.jpg

The CryptoQuant CEO added further evidence of institutional money stalling. He tweeted:

“We haven’t had significant Coinbase outflows since $23k, tokens transferred is decreasing, and the fund flow ratio for all exchanges is increasing. Still possible that institutional investors would join anytime soon, but we might face a correction if it continues like this.”

BTC cOinbase.png

As explained in an earlier tweet by Ki Young Ju, one of the best on-chain indicators to estimate institutional over-the-counter (OTC) BTC deals and interest is to monitor Coinbase BTC outflow.

Ju explained, “It seems massive Coinbase BTC outflow usually goes to their new cold wallet for custody that held 6000-8000 BTC. If Coinbase moves a significant amount of Bitcoins to other cold wallets, it would indicate OTC deals.”

The CryptoQuant CEO further tweeted examples of how this works, he added:

“Grayscale uses Genesis Trading for buying Bitcoins, and Genesis Trading uses Coinbase OTC desk. And Ruffer just confirmed they purchased BTC via Coinbase. And Coinbase Custody is directly integrated with Coinbase’s OTC desk.”

As the Bitcoin price continues to hover above the $29,000 mark, the bulls do not appear to be slowing down just yet. However, if the institutional investment is in fact drying up as Ju’s analysis indicated, the market could be in for a severe correction.

Image source: Shutterstock

Source

Tagged : / / / /

@thecryptocutter @cryptoquant_com Good question. I think it doesn’t matter if we can just focus on $ETH exchange reserve because the price eventually determined on exchanges. It’s decreasing since May this year, and it hit the two-year low a few days ago.

@thecryptocutter @cryptoquant_com Good question. I think it doesn’t matter if we can just focus on $ETH exchange reserve because the price eventually determined on exchanges. It’s decreasing since May this year, and it hit the two-year low a few days ago.

https://t.co/UyORtgHcRH https://t.co/w6jFw4qx2V

Source

Tagged : / / / / / / / / / /

@0l6l_ @cryptoquant_com It’s the number of addresses for stablecoins deposits on all exchanges, indicating investors try to send stablecoins to exchanges to buy crypto. For example, if this value hit 80, we can assume that 80 people are trying to deposit on exchange at a single block (10-15 sec)

@0l6l_ @cryptoquant_com It’s the number of addresses for stablecoins deposits on all exchanges, indicating investors try to send stablecoins to exchanges to buy crypto.

For example, if this value hit 80, we can assume that 80 people are trying to deposit on exchange at a single block (10-15 sec)

Source

Tagged : / / / / / / / /

Whale Watching: Top Bitcoin Cetologist Warns Not To ‘Buy The Dip’

Bitcoin blasted from $10,000 to just under $20,000 in just a few months, sans any significant correction. And while sellers have been unable to shift the bullish momentum thus far, increased whale activity has one top crypto quant analyst warning investors not to buy the “dip.” Here’s why the opinion is so “unpopular,” along with […]

Source

Tagged : / / / / / / / / / / / / /

Bitcoin Whales Return To Exchanges Stifling BTC Relief Price Rally Above $19,500

The Bitcoin price surged out above $19,500 earlier today, recorded as high as $19,570 on major exchanges before a sharply dropping to $19,050 due to selling pressure from BTC whales.

Bitcoin Whales Selling on Exchanges

Bitcoin price peaked just under $19,600 before once again facing rejection at the level due to selling pressures from BTC whales who had returned to exchanges in force.

Following Bitcoin’s recent surge to new all-time highs, the crypto became oversold and the BTC price plunged on Dec. 12 to $17,600, before quickly recovering above the $18,300 level.

Bitcoin then found a relief rally and surged through a key resistance level at $18,800 to rise as high as $19,570 on Binance—before the whales took their profits.

BTC Whale Warning

Bitcoin whales gathered on exchanges sold off the crypto above $19,500 and took profits causing the price to slip.

On Dec 15, Ki Young Ju, the CEO of CryptoQuant told his followers on Twitter that he had detected the BTC whales depositing their crypto to exchanges and would reduce his own position. He said:

“Realized profit at $19,250 and switched from generational long(10x) to normal long(1x). Looking at All Exchange Inflow Mean(144-block MA), $BTC whales are depositing to exchanges. I think whales need more time to make a profit here.”

The CryptoQuant CEO then gave the most direct warning possible to the crypto community, he tweeted:

“Unpopular opinion: Don’t buy the f*cking dip. Too many $BTC whales on exchanges”

Following his Tweet, the Bitcoin price dropped back below $19,100 and is now consolidating under the $19,400 resistance. 

Image source: Shutterstock

Source

Tagged : / / /
Bitcoin (BTC) $ 41,644.16 5.44%
Ethereum (ETH) $ 2,258.40 4.22%
Litecoin (LTC) $ 74.75 3.85%
Bitcoin Cash (BCH) $ 249.57 9.43%