Bitcoin plunged to a daily low of $53,470 from a high of $58,471, facing a 6% correction in a day. The market fears if everything will go south here on, but there’s the hope of the Fund flow ratio of Bitcoin to latch on.
The CEO of Cryptoquant, Ki-Young Ju, took to Twitter to put forth his observation that the fund flow ratio of Bitcoin across all exchanges is approx 7%, and this way better than when it was 16% in March 2020 when the price fell by 50%.
The rare fund flow is an indicator that most Bitcoin transactions happened outside the exchanges on OTC desks. It’s also been noticed by analysts that big whales are still accumulating and small whales are looking for gains now.
This 6% correction is quite insignificant when compared with the 20% corrections faced by Bitcoin price in the last two to three months.
The Options Contracts Expiry Phenomenon
Bitcoin options contract will have a huge quarterly expiry on Friday with 117K options expiring. And As history suggests, there has always been price volatility a week before the actual expiry date.
In the last month, $4 Billion worth of token contracts expired resulting in major volatility and this time will be no different. This expiry is a bullish improvement, as Wall Street traders will start buying more contracts after expiry.
Currently, Bitcoin is stuck in a limited price range, with both bulls and bears not taking the lead. Although, many analysts project for up to 20% correction to be healthy and a sharp spike in the post-correction phase.
At the time of writing Bitcoin is trading at $54,568.13 with a market cap of $1.02Trillion.