The CEO of on-chain analysis firm CryptoQuant, Ki Young Ju, says Bitcoin whales are fueling the crypto king’s move to the downside.
In a series of tweets, Ju reports that significant inflows into exchanges from large investors began on Wednesday, which suggests the large BTC holders were ready to sell.
Despite the pullback, Ju remains convinced that BTC is on its way to $100,000.
“Whales are depositing BTC to exchanges. No doubt it’ll hit $100,000 this year, but in the short-term, if we wouldn’t see any significant buying pressure from Coinbase Pro, I think BTC would be bearish.”
Per CryptoQuant’s Exchange Whale Ratio indicator, the level is now above 85%, which indicates a bearish scenario. A level below 85% indicates a bullish scenario.
Ju adds that outflows from Coinbase normally head to the exchange’s vaults, which hold crypto on behalf of investors.
“It seems Coinbase significant outflows usually go to many cold wallets owned by the Coinbase OTC desk. Pretty good hit rate. Above 10k BTC is significant.”
The crypto analyst further explains that the Coinbase premium, which is the gap between Bitcoin’s price on Coinbase and Binance, is trending lower.
“There has been buying pressure that’s enough to make a $100 gap between BTCUSD in Coinbase and BTCUSDT in Binance. This might come from high net-worth individuals and institutional investors.”
Ju argues that large investors may be pushing the price lower in order to create a period of consolidation.
“It seems BTC sellers came from Coinbase. Coinbase Premium Index has been a negative value since an hour ago. Coinbase whales might want BTC to go lower for consolidation.”
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