Recently, CryptoQuant CEO Ki Young Ju has stated that the outflow of Bitcoin from Coinbase gives a signal towards a bullish price action for the cryptocurrency. The recent data released by the firm suggests that a huge sum of Bitcoin has been recently withdrawn from Coinbase. To be more specific, the data indicates that on 31st January, almost 15,200 BTC worth more than $515million has been extracted from Coinbase.
According to Ju, the huge transactions are more likely to be an OTC deal from the side of investors.
Transactions Of Bitcoins Suggest Bullish Price Action
Ki Young Ju also informed us that the overflow of Bitcoin is giving a bullish indication. He explained that if BTC moves from Coinbase to other wallets, it suggests OTC deals by the investors. He added that as the price is gradually being determined by the exchanges, the OTC deals or non-exchange outflow of the cryptocurrency is understood as bullish momentum.
The transactions of BTC from Coinbase are also assisting to increase the popularity and legitimacy of trading in cryptocurrency which will have a significant impact on the crypto market as well.
Ju further explained how the 15,000 BTC split into 1,000-5,000 BTC wallets which shows the increasing security cost for the digital currency. He also pointed out that the major internal transactions are usually operated with rounded numbers like 1,000 to 5,000 BTC whereas the current transfer from Coinbase was done in groupings like 1,265,1,957, and 2,391 Bitcoins.
Bitcoin showed only a mild change in its price for a few weeks. The digital asset also had a price dip from $42,000 to $30,000 recently that created enough confusion among traders about the cryptocurrency’s unpredictable movement. In this regard, the experts inform that the transactions of BTC suggest that the dip of the price is being perceived as an opportunity by traders.
