The well-known CEO of the well-known analytics tool said the Bitcoin (BTC) sale and the associated price drop “will not happen”.

In a tweet on October 12th, CryptoQuant CEO Ki Yong Joo indicated that average inflows into stock markets remain low despite the bitcoin price hike.

Ki: Stock Market Movements ‘Still in a Safe Zone’
Key stressed that CryptoQuent notes that average capital flows into the stock market remain in a low-risk range, indicating a low potential for a sell-off.

Average stock market inflows measures the number of bitcoins going to exchanges, which means that they can be used for sale or trading. On a larger scale, it provides insight into the activity of large-sized hodle whales that are planning to sell BTC.

“There will be no BTC dumping,” Key commented.

“All reciprocating currents usually mean the number of active whales in the exchange. Over 2 BTC is a dangerous area and we are still in a safe zone.”

Consequently, the BTC / USD rate, which approaches the $ 11,500 mark this week, did not increase the temptation for investors to sell.

The lack of activity is in stark contrast to what happened earlier this year. On March 9, a week before the coronavirus caused the asset price crash, currency flows exceeded the “danger zone” 2 BTC. A few days later, around March 14th, the flow reached nearly 5 Bitcoins. Bitcoin then dropped to $ 3,600.

What is the selling pressure from BitMEX?
CryptoQuant has also previously allocated streams of miners who are contributing to Bitcoin price changes. In the past month, there has been an increase in influx from mining pools, which is also supposed to be on sale, which followed a 3% drop in BTC / USD.

In October, the withdrawal situation was tarnished by BitMEX, as the derivative giant is currently under investigation by US tax authorities. On October 2 alone, BitMEX outflows reached 50,000 BTC, according to CryptoQuant data.

BitMEX, Cointelegraph and Digital Assets Data confirm that they do not have as much market share in Bitcoin futures as they once did.

A chart to compare trading volumes for bitcoin futures over a month

Chart to compare trading volumes for one-month bitcoin futures contract. Source: Cointelegraph / Digital Asset Data

As many analysts note, Bitcoin has generally weathered the storm caused by platform issues, reaching the $ 11,000 resistance level.

Cointelegraph reported that this resilience exacerbated the bullish state of Bitcoin as more market participants are confident of further gains before a new downturn occurs.

Source: CoinTelegraph

LEAVE A REPLY