When things are quiet: Bitcoin whales sell Bitcoin for “attention”
Bitcoin (BTC) whales tend to dump large amounts of BTC onto the market when things are quiet to attract attention.That was the conclusion of Ki Young Ju, CEO of the on-chain analysis company CryptoQuant. On June 16, he looked at the latest bitcoin price trend.”
Cash flow ratio” shows clear Bitcoin price pattern
According to Ki, a long-term correlation between the use of the Bitcoin network on exchanges and the price development says a lot about the behavior of the whales.The cash flow ratio shows how many bitcoins sent are linked on-chain to an exchange.
The cash flow ratio suggests that the higher the price, the more exchanges use the Bitcoin blockchain.Ki highlighted activity in March, when the BTC / USD pair tumbled to a low of $ 3,600 as an example that supports this theory.”On March 13, network usage for deposits and withdrawals on all exchanges reached 24 percent and then decreased further,” he said.According to CryptoQuant data, the BTC / USD exchange rate was $ 5,611 on March 13 and the cash flow ratio was 0.24. Since then, the price has risen while the ratio has fallen.