Ki-young Ki, CEO of Cryptoquant, who attended the 3rd anniversary webinar’Talking about the future of the digital asset market in 2021′ held online on the 16th said, He first mentioned the importance of dumping whales. Whenever the market plunges, the volume of whales comes out.
“It is important whether the top 10 transactions that whales deposit account for 85% of the total transaction,” said Joo. If this proportion is more than 85%, it can drop sharply, while if it is kept below that, the probability of rising is high. Currently, the proportion of whale deposits is 85% or less, which is a high probability of rising bitcoin prices.
Even when miners sell a lot of bitcoins, the bitcoin price is likely to fall. Miners regularly send bitcoins to the exchange, but if they suddenly send unusually large quantities, the price is likely to drop. Even in this case, CEO Joo said that even in this case, the price of bitcoin does not always drop because the miners sell bitcoin through OTC (OTC).
He said that recently, miners are selling a lot of bitcoins, but institutions are buying that much, which is overwhelming miner sales. Miners started selling Bitcoin when it hit $42,000. After Tesla bought $1.5 billion worth of bitcoin last week, the state’s analysis is that institutional buying has grown stronger.
He also introduced Cryptoquant Coinbase Premium Index. This index aggregates the price difference between the Coinbase BTC/USDC pair and Binance BTC/USDT pair. The higher the coinbase premium, the more that institutional investors are buying bitcoins with tether, Joo explained. He said that the coinbase premium could be high as Binance sells a lot of tether. CEO Joo explained that as the stablecoin transaction volume reached an all-time high, the relationship between stablecoin and bitcoin will become more closely related.
CEO Joo said that the coinbase premium is formed only when the bitcoin price spikes, and through this, the intention of the whales can be grasped. He said that it is not yet time for Bitcoin to hit $50,000, as the price of bitcoin on Coinbase is currently lateral.