Another prediction has come in favour of the bulls from the table of CryptoQuant, a cryptocurrency analysis firm. Recent data culled from the firm’s website indicates that over 15,200 BTC was withdrawn from the famous cryptocurrency exchange, Coinbase on 31st January. This sum is currently, at the time of writing, valued at over $535 million.
According to the CEO, Ki Young Ju, this large outflow went into custody wallets that have only recorded in-going transactions. He further stated that the outflows are reminiscent of “proof-of-keys” days and could likely be an OTC (over-the-counter/non-exchange transactions) deal from institutional investors who are accumulating the leading cryptocurrency for the next bitcoin bull break.
Going on to state reasons why he was of this opinion, he referred to his tweet on 18th December where he had earlier stated that, “If Coinbase moves a significant amount of Bitcoins to other cold wallets, it indicates OTC deals…since the price is eventually determined on exchanges, massive non-exchange transaction volume is considered as a bullish signal. These transactions include OTC deals.”
In his analysis, he also highlighted the fact that most internal transfers conducted have been executed with round figure amounts ranging from 1,000 to 5,000 BTC but these transfers have recorded odd numbers of 1,265, 2,391, and 1,957 BTC. The reason being that splitting 15,000 BTC into wallets would increase security costs. As more and more institutions continue to key into the cryptocurrency sector, we see that this has enabled it to score more points in the area of legitimacy as well as provide more support for the price of bitcoin to further help reduce its volatility.
Also, although many predicted that the recent dip of bitcoin after it reached an all-time high of $41,000 indicated a continued downward spiral, judging from the recent purchase of 4,400 BTC on 1st Feb reported by the CEO on Twitter, it seems that many institutional investors have keyed into the opportunity to revive the bullish market. We may see an upward rally soon if the predictions are anything to go by.
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