ZB Academy:The exchange inflow average index rose to 2.5BTC

ZB Academy
3 min readNov 30, 2020

Blockchain analysis company CryptoQuant’s exchange inflow average indicator recently rose to 2.5 bitcoins, the highest level since March. This indicator is used to measure how many bitcoins enter the exchange. In other words, the average size of inward transactions entering the trading platform has risen to an eight-month high. In this regard, CryptoQuant CEO Ki-Young Ju said that according to the data, the giant whale is transferring its bitcoin to the exchange. When the whale is active on the exchange, this cryptocurrency is usually traded in a sideways reversal.

As of press time, according to the official market data of ZB.com, the transaction price of Bitcoin is close to US$18,405, which has risen by 4.38% in 24 hours, and the highest price in 24 hours is US$18,475. Ki-Young Ju believes that it is still not possible to rule out the possibility that the price of Bitcoin will fall or break below Thursday’s low of $16,327, because the current average inflow of exchanges has exceeded 2 Bitcoins, which is a dangerous area for CryptoQuant. Based on past conditions, this indicator had exceeded this level at least a week before the price of Bitcoin fell by 40% on March 12. Also before Bitcoin was sold sharply in November 2018, the indicator also rose sharply.

According to recent crypto industry news, it is not groundless that the giant whales that the rise in this indicator reflects are transferring their bitcoins to exchanges.

Canadian investment company Cypherpunk Holdings dumped its two cryptocurrencies, Ethereum and Monero, and invested the proceeds in Bitcoin. The company stated in its announcement last Thursday that its bitcoin holdings increased from 72.979 bitcoin at the end of the second quarter to 276.479 bitcoin, an increase of 279%. The company increased its holdings of Bitcoin by completely liquidating Ethereum and Monero. In addition, part of the proceeds from the company’s private placement of 505,000 Canadian dollars (approximately US$400,000) on August 27 was also used to purchase Bitcoin.

And Pendal Group, an investment management company listed on the Australian Securities Exchange and managing assets of more than 100 billion Australian dollars (73.6 billion US dollars), has also entered the bitcoin field. According to a report by the Australian Financial Review last week, Pendal Group’s head of debt and income strategy, Vimal Gor, said that as Bitcoin “enters the mainstream,” the company is currently investing in Bitcoin futures on the Chicago Mercantile Exchange.

The Guggenheim Funds Trust submitted an amendment to the SEC (United States Securities and Exchange Commission), requesting that 10% of its $5 billion macro opportunity funds be invested in GBTC (Grayscale Bitcoin Trust) to gain exposure to Bitcoin. This means that the fund can invest up to $497 million in GBTC. GBTC is a publicly traded financial product whose function is similar to an exchange-traded fund (ETF) and can track the price of Bitcoin. Guggenheim pointed out that GBTC’s transaction price has a significant premium. The Macro Opportunity Fund is part of Guggenheim Investments, the global asset management and investment consulting division of Guggenheim Partners. Its total assets of fixed assets, equity and alternative strategies exceed $233 billion.

About ZB Group

ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.

ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank.

Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.

Learn more about ZB Group by visiting www.zb.com.

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ZB Academy

The world’s leading cryptocurrency exchange: www.zb.com. ZB Academy is to provide prefessional blockchain insights.