As the price of bitcoin drops from a new all-time high above $58,000 to $46,000 at press time, the CEO of a cryptocurrency analytics platform revealed that BTC whales are accumulating funds, making it unlikely for the price to drop below $44,000.
On social media, Ki Young Ju, CEO of CryptoQuant, said that the so-called Coinbase Premium hit an all-time low of -$1,020, before skyrocketing to $486 during the flagship cryptocurrency’s dip. The CEO’s words come amid a wider market drop that has seen crypto’s market cap shed over $300 billion.
Coinbase Premium hit the all-time low -$1020 and then skyrocketed +$486.
Remember who's driving the market. Coinbase whales have been accumulating $BTC in 44-48k range.
Even if there are more corrections, it's unlikely to go down below 44k.
— Ki Young Ju 주기영 (@ki_young_ju) February 22, 2021
The Coinbase Premium, it’s worth noting, refers to a premium that develops on popular cryptocurrency exchange Coinbase when compared to the spot price of bitcoin on other trading platforms like Binance. The higher the premium, the higher the buying pressure from large investors.
Similarly, a negative premium implies significant selling pressure on the exchange. Coinbase was chosen as it’s known to have facilitated trades for large industry players, including MicroStrategy, which has invested over $1 billion in bitcoin, and One River Asset Management.
Moreover, CryptoQuant has tacked large outflows from the exchange that appear to go to custody wallets, suggesting large investors have been buying cryptocurrency through over-the-counter deals on Coinbase. As whales on Coinbase are accumulating around the $44,000 to $48,000 mark, he said, it’s unlikely the price will drop below $44,000.
Ki Young Ju’s predictions have been rather accurate in the past. Earlier this month, the CEO predicted BTC would reach the $50,000 mark soon, and shortly after bitcoin broke through the psychological barrier to hit a new high above $58,000.
Last month, the analyst revealed he has “no doubt” the price of bitcoin will hit $100,000 this year. He is known in the cryptocurrency community for being bullish on the flagship crypto.